In this photo illustration, the Facebook and Google logos are seen on a smartphone in front of an Australian flag.
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Australian Treasurer Josh Frydenberg told CNBC negotiations with Facebook that the country’s new media law was “quite lengthy and difficult” – but both parties finally managed to resolve their differences.
Last week, the Australian parliament passed a law requiring companies such as Facebook and Google to pay media and publishers to link their content to the news channel or search results.
Prior to passing the law, Facebook, in retaliation against the bill, blocked Australian users from viewing and sharing news content on its platform. The Australian government criticized the measure, which Facebook later reversed after the two sides reached an agreement.
“Well, there were tough negotiations,” Frydenberg told CNBC’s Will Koulouris on Wednesday.
“Obviously, with Facebook, we were deeply disappointed in their actions to remove Australian news from their site … But since then, we’ve been on the phone, working on the differences and reaching, I think, a position for each other. nice “He said.
Things are moving in the right direction, although this has been a rather lengthy and difficult set of negotiations.
Josh Frydenberg
Australian Treasurer
Negotiations prompted the Australian government to introduce last-minute changes to the proposed law (officially known as the mandatory bargaining code for media and digital platforms) before it was passed.
“Facebook is now starting good faith negotiations with Australian media companies,” Frydenberg said. He cited the letter of intent signed by Seven West Media, owner of the Seven broadcast network, to provide news content to Facebook.
“Things are going in the right direction, even though this has been a rather lengthy and difficult set of negotiations,” the treasurer said.
Facebook’s response to media code was often compared Google’s reaction.
Google also backtracked sharply and threatened to withdraw the search function from the country, but eventually the company concluded and reduced deals with various media outlets, including Seven West Media and the Murdoch family, which owns News Corp.
Frydenberg said there is “no doubt” that other countries are watching developments related to Australia’s new media law.
The passage of the law made Australia the first country where a government-appointed arbitrator can decide the final price digital platforms must pay to news publishers, as long as a trade agreement cannot be reached independently.
Countries like France have taken some steps to make tech companies pay for the news, while others like Canada and the UK are contemplating their next steps.
– CNBC’s Saheli Roy Choudhury contributed to this report.