Google and Facebook ‘very close’ to deals to pay for news in Australia

Mel Silva, the managing director of Google Australia and New Zealand, appears at a Senate inquiry into a mandatory code of conduct proposed by the government at Parliament House in Canberra in January 2021

Credit: Mick Tsikas/AAP

Both companies have threatened to restrict their Australian services if the code is introduced in its current format.

In an effort to strike deals without the code’s oversight, a Google spokesman said the company was in discussions with "large and small" publishers.

A spokesperson for Facebook said the company had been negotiating to "land commercial deals that reflect the commercial value of news content on our platform".

The first of those deals was revealed on Monday. SevenWest Media, owner of broadcaster 7NEWS and The West Australian newspaper, announced an agreement for its content to be hosted on Google’s News Showcase product.

The Sydney Morning Herald reported the deal was worth around Aus $30m (£16m) a year.

Frydenberg hinted to local media the companies’ efforts could be enough for the code to be softened via amendments before it is presented to parliament on Wednesday, however his office is yet to release details. 

The treasurer also suggested major Australian media organisations, such as Rupert Murdoch’s News Corp and Nine Entertainment, could be close to reaching similar deals.