What are the changes?
As part of the amendments to the bill, the Australian government will consider trade agreements that digital platforms like Google and Facebook have already entered into with local news media companies before deciding whether the code will apply to the tech giants.
The government will also notify the digital platforms a month before the final decision.
It will also include a two month mediation period to allow digital platforms and publishers to broker business before entering into arbitration as a last resort.
The changes are intended to give digital platforms and news organizations “further clarity” on how the negotiating code will be implemented, the government said.
What happened before
Australia wants digital platforms to pay local media and publishers to link their content in news feeds or search results.
If both sides are unable to reach a trade deal, government-appointed arbitrators can decide the final price by deciding in favor of one party – the digital platform or the publisher – with no room for one, according to experts Funding agreement exists.
The arbitration clause was one of the main reasons Facebook raised objections.
– CNBC’s Will Koulouris contributed to this report.
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