Media code that prompted Facebook to declare war on Australia passes the Senate

Australia’s world-leading media bargaining code that triggered Facebook’s unprecedented ban on local news sites has cleared the Senate and will likely become law by the end of the week.

The code is seen as a pivotal step in regulating big tech and ensuring they pay their fair share for locally produced journalism content. 

Due to amendments being made to the code, it will be sent back to the House of Representatives, where it is expected to pass on Thursday. 

The world-first media bargaining code will force online powerhouses including Facebook and Google to pay for displaying news content.

Australia’s world leading media bargaining code passed the Senate on Wednesday night

Treasurer Josh Frydenberg (pictured right with communications minister Paul Fletcher) said the new code was ‘about levelling the playing field’

Google threatened to pull its search engine from Australian users before backing down and striking multiple deals worth millions of dollars with media companies.

The government has long spearheaded the establishment of the code in order to protect public interest journalism.  

‘Australia has led the way globally in seeing public interest journalism protected. Our news media code is all about levelling the playing field and ensuring digital giants pay news media businesses for generating original content,’ Treasurer Josh Frydenberg said. 

Prime Minister Scott Morrison likened the media bargaining code to a tax crackdown on multinational companies that sparked a protest from Amazon.

‘They left in protest and they came crawling back because our government held its ground,’ he told parliament.

Mr Morrison said all countries needed to stand up to the online behemoths on making sure governments’ actions were respected.

Facebook has agreed to restore news pages in Australia ‘in the coming days’ after CEO Mark Zuckerberg (left) forced MPs to water down new laws that will make the site pay for content

Facebook last week blocked all news content in Australia in protest at the new laws, sparking international outcry and calls for tougher regulations 

‘Big tech companies may be changing the world but they shouldn’t run it,’ he said.

Facebook shocked the world last week when it blocked Australian news websites in response to the new law but agreed to reverse its ban after securing last-minute amendments to the code.

The code will no longer automatically apply and digital platforms will be given more time to negotiate payment with media organisations.

M Frydenberg said negotiations with the social media giant were always bound to be complex and difficult.

‘We saw the market power of digital giants like Facebook when they pretty much blacked-out the Australian news media business from their platform just last week,’ he told Sky News.

‘That was a wake-up call for the whole world, really.’

Facebook signed an in-principle agreement with Seven West Media after the government agreed to change its landmark code.

Communications Minister Paul Fletcher expects other media companies will follow suit.

Australian ministers (Prime Minister Scott Morrison, right, Treasurer Josh Frydenberg, left, and Communication Minister Paul Fletcher, rear) have agreed to make four concessions to the law which will make it more beneficial to Facebook 

The journalists’ union fears small publishers could be shut out of commercial arrangements with Facebook and Google if the internet giants skirt around the code by signing individual deals with big media companies.

‘We now face the strange possibility that the code could be passed by parliament and it applies to precisely no one,’ Media, Entertainment and Arts Alliance federal president Marcus Strom said.

‘It will just sit in the treasurer’s draw as a threat to misbehaving digital companies.’

Google has announced a series of deals with major publishers in recent weeks, including News Corp, Nine Entertainment, Guardian Australia and Seven West Media.

As Facebook also eyes the major media players, Mr Fletcher is hopeful the network will consider smaller regional outlets.

‘The news media bargaining code includes a mechanism for the digital platforms to make a default offer to smaller and regional players,’ he told the ABC.

Labor backed the amendments to the media bargaining code, assuring its passage through parliament.