The Australian government has announced a mandatory code that will force tech giants Google and Facebook to pay Australia media when they use their content.
Finance Minister made the announcement today, alongside Prime Minister Scot Morrison and Communications Minister, Paul Fletcher.
According to Mr. Frydenberg, the idea behind the code is to ''even the playing field'' between the digital platforms and the Australian media.
It should be noted that the government had been in negotiations with the companies for a voluntary form of the code which were expected to run until November 2020. However the outbreak of coronavirus has crippled Australian media, by drastically reducing their advertising revenue. The other reason that made the government change its mind, was that, according to the ACCC, the matter of payment for use of content was not something the tech companies would accept.
The new code will include the same directives as the old one, with additional penalties should the tech companies refuse to comply. A draft of the new code is expected to be released by the end of July.
You can read more in Enlglish here.
