Facebook made a payment agreement with the news organization

Robert Thomson, Chief Executive Officer of News Corp, stated that the payment agreement with Facebook is a “turning point” and will have a material and significant impact on Australian news organizations.

In a written statement made by News Corp, it was reported that Facebook will continue its previous agreement with Sky News Australia, one of the News Corp affiliates.

Facebook announced on February 26 that it had signed pre-agreements with Private Media, Schwartz Media and Solstice Media companies in Australia for the news content used.

The “Australian Media Bargaining Act”, which was approved by the House of Representatives and entered into force on February 25, provides for the pricing of news content by negotiating between technology companies and media organizations.

The law, which aims to strengthen the hand of reporters, allows news organizations to go to arbitration for price disputes.

The law also includes a clause that requires technology companies to notify in advance of which content they are subject to legal regulations.

Internet “giants” to pay for news for the first time

It is considered that the law, which confronts large internet companies with the obligation to pay for the news shared on their platforms for the first time, can set a precedent for similar regulations in other countries.

Australia announced in April 2020 that it will be regulated to pay news sources for content that tech companies use.

Josh Frydenberg, head of the Australian Federal Treasury, said his country would be the first in the world where social media giants will have to pay media outlets for original news content.

Google had threatened that if the law proposal was accepted, it would shut down the main search engine in Australia, and Facebook would block news sharing.

Google later agreed to use news content for a fee with Australia’s leading media companies Seven West Media and Nine Entertainment, as well as Australian media boss Rupert Murdoch’s News Corp.