The federal government’s media bargaining code is “very much an issue of sovereignty” and will ensure there is a mutual benefit between tech giants and Australian news publishers, according to Josh Frydenberg.
The Morrison government’s mandatory media bargaining code passed through the parliament last night after a protracted negotiating process with the world’s largest tech platforms.
The code aims to ensure Australian news producers are paid for the content used by Facebook and Google, and to guarantee the “rules of the digital world replicate the rules of the physical world”.
Treasurer Josh Frydenberg told Sky News the negotiation process was “protracted, complex and difficult” but the government was determined to get the code through.
Both tech giants met the government with significant warnings after Google threatened to pull its platform from Australian shores, and Facebook banned news publishers for over a week, which the treasurer has confirmed will end on Friday.
Mr Frydenberg said the Morrison government never dismissed those threats but “we weren’t intimidated by them”.
“There is a mutual benefit and a mutual interest in having those platforms remain in Australia, but they need to remain here on our terms,” he said.
“There is very much an issue of sovereignty, this was always much bigger than about one or two commercial deals. It was about the ability of the Australia government to make laws that operate here in Australia”.
The bargaining code, and the successful negotiations between the federal government and Facebook, have gained significant media attention from across the world.
The New York Post published an article titled “Aussies 1, Facebook 0” in which it argues the Australian negotiations should pave the way for a similar deal in the United States.
“Washington should take notice and make tech giants, who make billions from advertising, pay American media their fair share, too,” the article said.
The treasurer said the whole process and the mandatory code shows Australia has “very much led the world”.
“The actions that we’ve taken here in Australia are having such global ramifications,” he said.
“What has transpired in recent weeks in Australia has very much been a proxy battle for the world.”
