Media

Digital platforms including Facebook and Google will now have to pay Australian news publishers, under a new law, the world’s first, passed by Australia on Feb. 25.   Under the News Media Bargaining Code, tech firms are obligated to pay news companies if they have an annual income exceeding AU$150,000 (HK$905,585), a move seen to mostly benefit Rupert Murdoch’s News Corp, which owns most of Australia’s major newspapers.   If tech companies do not pay, then they will be fined  AU$10 million (HK$60.1 million) or 10% of the annual turnover of the digital platform.  The code also allows news companies to negotiate payments with tech firms over the next three months. If they do not reach an agreement by that time, arbitrators from the Australian Communications and Media Authority, a government statutory body, would make the final decision on the payment. "For every $100 of online advertising spend, $53 goes to Google, $28 goes to Facebook, and $19 goes to other participants," said Josh Frydenberg, the Treasurer of the Australian government at a press conference.  Facebook suspended hundreds of pages from Australian news outlets, personal blogs and government departments on Feb. 18 following the amendment proposal.  The social media giant said in a statement in August last year that it will stop people from sharing local and international news if the law is passed.  “Assuming this draft code becomes law, we will reluctantly stop allowing publishers and people in Australia from sharing local and international news on Facebook and Instagram,” the statement said.  The platform also said in a statement that the code “fundamentally misunderstands the relationship” between its platform and publishers who use it to share news.   Facebook accepted the code after last-minute changes to the bill, which included a three-month negotiation period with an additional two months for mediation between …