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# Facebook befriends Australia again, after striking a deal with Canberra government on new law

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Facebook befriends Australia again, after striking a deal with Canberra government on new law

Facebook CEO Mark Zuckerberg and Australian Treasurer Josh Frydenberg have negotiated a compromise

The social-media company Facebook said on Tuesday that it would restore Australian news on its platform, after striking a deal with the Canberra government on a new law that will force big technology companies to pay for news.

  • Facebook last week had blocked Australian users from sharing and using news on its site, in protest against the government’s bill.

  • Facebook Chief Executive Mark Zuckerberg and Australian Treasurer Josh Frydenberg have since then negotiated a compromise on what Facebook called “a number of changes and guarantees” addressing the group’s concerns.

  • The changes notably involve the arbitration program that will be used if the tech groups don’t reach a deal with news publishers. The mandatory mechanism will now only be triggered after a two-month mediation period. 

  • Tech giant Google
    GOOGL,
    -1.25%
    has already signed a number of deals to pay for news on its own platform, including a landmark global agreement with News Corp
    NWSA,
    -0.13%
    that includes the company’s Australian newspapers. (News Corp owns MarketWatch, the publisher of this report.)

  • Facebook
    FB,
    +1.76%
    “has refriended Australia,” and it and Google have sought a “workable” code because “they know that the eyes of the world” are on the country, Frydenberg said on Tuesday.

The outlook: The agreement with the Australian government provides Facebook with a face-saving exit out of a tricky public relations situation, after the backlash triggered last week by its Australian boycott. The question now is whether the Australian law will serve as a model for other countries or regions of the world.

From the archives (December 2020): Facebook, Google, Apple and Amazon could face multibillion-dollar fines under new EU tech regulations

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