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The text was easily adopted after Google and Facebook reached agreements that avoided exposure to arbitration, the results of which are binding. It paves the way for these two groups to invest tens of millions of dollars in local content deals.
This agreement could serve as a model for resolving disputes between tech giants and regulators around the world, to balance the relationships between traditional media that face great financial difficulties and the giants that dominate the Internet and receive a large portion of advertising revenue.
The Australian government said the law would guarantee news organizations “fair compensation for the content they provide and thus help keep public interest journalism alive in Australia”.
Google will now pay for the news content that appears in its new tool called “Google News Shockers”, while Facebook has become to pay providers who appear in its “News” news product, which is supposed to be launched in Australia later this year.
And there was a confrontation between Facebook and the Australian government, after blocking links to news articles issued by local or international media in response to the bill, the owner of Instagram and WhatsApp finally backed down and struck a last-minute deal with Canberra.
Mark Zuckerberg’s group announced that it will invest “at least” $ 1 billion in news content over the next three years.
This new amount, announced by Nick Clegg, the PR official at the social media giant, on Wednesday, adds to the $ 600 million poured into the media since 2018.
Google had previously agreed to pay “large sums” in exchange for content from Robert Murdock’s “News Corp” media group that was pushing for the adoption of the new Australian law.
Facebook and Google have two more months to conclude other deals that would avoid binding arbitration.