The News Media and Digital Platforms Mandatory Bargaining Code officially became law in Australia, and it will require platforms such as Google and Facebook to pay the local media outlets for the content displayed on the news feeds or search results.
“The Code will ensure that news media businesses are fairly remunerated for the content they generate, helping to sustain public interest journalism in Australia,” read the statement of Communications Minister Paul Fletcher and Treasurer Josh Frydenberg.
By approving this law, Australia became the first country where a government-appointed arbitrator can decide the final price that platforms have to pay the Australian publishers for their content if a deal in not reached independently.
With this law, Australia could set a precedent for other countries like France, Canada, and the UK to regulate Big Tech.
Following the news, Facebook stock price traded 0.58% lower.
Sources: cnbc.com, finance.yahoo.com