Negotiation happens after arm wrestling for remuneration to the press imposed by local law. Google has also closed similar deals in the country.
The press group News Corp, owned by businessman Rupert Murdoch, announced last Tuesday (16) that it closed a three-year deal with Facebook in Australia on the news, after the approval of a law that obliges the internet giants to remunerate the Australian press.
In February, Facebook blocked access to news for users in Australia in response to the law regulating relations between traditional media and major technology companies.
Understand the law that sparked the dispute with Facebook
The move sparked outrage in Australia after the Facebook pages of emergency services, health organizations and charities were also affected by the blockade.
Facebook lifted the block and agreed to negotiate financial deals with Australian press groups, which prompted the government to relax the legislation.
The agreement announced on Tuesday (16) establishes that companies that belong to News Corp will provide news content to Facebook’s News service.
This agreement will also apply to dozens of media companies in Australia, including The Australian newspaper, Sydney’s Daily Telegraph and Melbourne’s Herald Sun. Sky News Australia also concluded a new deal with Facebook.
Robert Thomson, managing director of News Corp, said in a statement that the group’s deal with Facebook is “an important event and will have a major impact on our Australian media companies”.
Andrew Hunter, Facebook’s director for press deals in Australia and New Zealand, confirmed the deal and said the group had “pledged to provide Facebook News to Australia”.
Facebook and Google, the two American technology giants, affected by Australian law, resisted clauses that forced them to accept an arbitration over the amounts they should pay local media to publish Australian information on their platforms and in their search results.
LEARN MORE: Google threatened to block search engine in Australia
Google has negotiated million dollar license agreements for its Showcase product with a number of Australian companies, including the country’s two largest press groups, News Corp and Nine Entertainment.
The Australian government agreed to relax the legal conditions for arbitration if the internet giants signed agreements with local media companies.
