A new law has been passed in Australia. The law will force technology companies to pay publishers for news content. It sets a precedent for other countries to take similar action. Facebook has said it will spend $1 billion over the next three years to support journalism after controversy over its opposition to the law shutting down its Australian news page.
The new legislation was passed by the Australian Parliament on Thursday (Feb. 25). In a statement, Australian Treasurer Josh Frydenberg said the new law “will ensure the news media industry is paid fairly for the content it creates.”
The introduction of the unprecedented new law in Australia has sparked intense debate for months. Facebook and Google objected to the initial version of the law, which would have allowed media organizations to bargain with it either individually or collectively – and then seek binding arbitration if the parties could not reach an agreement.
Facebook even shut down the Australian news page on its website last week to express its opposition to the law. Australia has since indicated some changes to the provisions of the Act, including that “consideration must be given to whether digital platforms are making a significant contribution to the sustainability of Australian journalism by entering into commercial agreements with news media.”
In addition, after a period of “good faith” mediation, the bill now provides that arbitration should only be used as a “last resort.”
Facebook had already restored the Australian news page on its website earlier in the week.
On Wednesday, the company said it would invest at least $1 billion over the next three years to support journalism. “Facebook would be more than happy to be a partner to news publishers,” Nick Clegg, head of Facebook’s global business, said in a statement. He said, “We fully recognize that quality journalism is at the heart of the open society function – informing and empowering citizens, and also holding the powerful accountable.”
In a posting, Craig also defended Facebook’s previous approach, saying that at the heart of the controversy over its actions was a misunderstanding between Facebook and news publishers.
For its part, Facebook said that with the changes, the new law would be able to “support the publishers we choose.” Later, Facebook revealed it had struck a deal with Seven West Media, a major Australian media company.
Meanwhile, Google has already formed partnerships with major Australian media companies, including Seven West Media and Murdoch’s News Group, ahead of the new law’s passage.
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