In this photo illustration, the Facebook and Google logos are seen on a smartphone in front of an Australian flag.
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Australian Treasurer Josh Frydenberg told CNBC the negotiations with Facebook over the country’s new media law were quite protracted and difficult. but both sides eventually succeeded in resolving their differences.
The Australian Parliament last week passed a law requiring companies such as Facebook and Google to pay media sales and publishers to link their content on news feeds or in search results.
Prior to the enactment of the law, Facebook – in retaliation for the proposed bill – blocked Australian users from viewing and sharing news content on its platform. The Australian government criticized the move, which Facebook later reversed after both parties reached an agreement.
“Well, there were challenging negotiations,” Frydenberg told CNBC’s Will Koulouris on Wednesday.
“Obviously we were deeply disappointed with Facebook for their efforts to wipe Australian news from their website … But since that time we have been telephonic, we have worked through our differences and we have accepted a position among ourselves,” he said.
Things are moving in the right direction, although it has been a fairly lengthy and difficult set of negotiations.
Josh Frydenberg
Australian Treasurer
The negotiations led to the Australian government making last-minute changes to the proposed law – officially known as the mandatory bargaining code News Media and Digital Platforms – before it was passed.
“Facebook is now starting to negotiate in good faith with the Australian news media companies,” Frydenberg said. He cites the letter of intent that Seven West Media, which owns the broadcasting network Seven, signed to provide news content to Facebook.
“Things are moving in the right direction, even though it was a fairly protracted and difficult set of negotiations,” the treasurer said.
Facebook’s response to the media code has been frequently compared to Google’s response.
Google also pushed back strongly and threatened to pull its search feature out of the country – but the company eventually demonstrations and appointments made with various media, including Seven West Media and the Murdoch family owned by News Corp.
Frydenberg said there was “no doubt” that other countries were watching developments related to Australia’s new media law.
By breaking the law, Australia is the first country where an arbitrator can decide by the government on the final price that digital platforms must pay to news publishers, provided a commercial agreement cannot be reached independently.
Countries like France have taken some measures to make technology companies pay for news, while others like Canada and the UK are considering their next steps.
– CNeli’s Saheli Roy Choudhury contributed to this report.