Australian parliament on Thursday passed landmark legislation that requires global digital giants to pay for local news content. This came after fierce opposition from Facebook and Google, which has now been watered down. Earlier, Facebook had also implemented a ban on Australian news pages but said it will lift it after reaching a deal with the government. 

After the law, Google will pay for news content in Australia that appears on its “Showcase” product, while Facebook will pay providers, whose content will appear on its “News” section. The new law, through which Google and Facebook will invest tens of millions of dollars in local content deals, will be rolled out in Australia later this year. 

Also Read | $1 billion to be paid by Facebook in ‘support of journalism’

Giant tech firms have accused the legislation, saying it would threaten their business models. However, regulators had accused the companies dominating online advertising of draining cash away from traditional news organisations while using their content for free. 

Treasurer Josh Frydenberg, in a statement, said, “Importantly, the code encourages parties to undertake commercial negotiations outside the code and the government is pleased to see progress by both Google and more recently Facebook in reaching commercial arrangements with Australian news media businesses.”

Google was keen to avoid having to pay anyone for links that could make their flagship search engine unworkable. While Facebook shut down access to news content for Australian users but lifted the ban on Tuesday. 

Also Read | Facebook’s news blackout raises misinformation fears in Australia

The law, called News Media and Digital Platforms Mandatory Bargaining Code, would ensure that news businesses “are fairly remunerated for the content they generate, helping to sustain public interest journalism in Australia”, the Australian government has said.

Facebook and Google now have an additional two months to reach further agreements that would stave off binding arbitration.