Australia passes law making Facebook and Google pay for news | Al Jazeera

Australia’s parliament passed landmark legislation on Thursday requiring global technology giants to pay for the news content shared on their platforms, in a move that is being closely watched around the world.

The law was passed after a last-gasp deal that watered down binding rules Facebook and Google had fiercely opposed and which last week prompted Facebook to remove all news from its Australian platform.

“The code will ensure that news media businesses are fairly remunerated for the content they generate, helping to sustain public-interest journalism in Australia,” Treasurer Josh Frydenberg and Communications Minister Paul Fletcher said in a joint statement. The rules will be reviewed after a year.

Google will now pay for news content that appears on its Showcase product and Facebook is expected to pay providers who appear on its News product, which is to be rolled out in Australia later this year.

Regulators had accused the companies, who dominate online advertising, of draining cash away from traditional news organisations while using their content for free.

The law was developed after extensive analysis from Australia’s anti-trust regulator and almost three years of public consultation and could offer encouragement to countries such as Britain and Canada which are planning similar laws.

Big technology firms had fiercely opposed the legislation, fearing it would threaten their business models.