Facebook to reinstate news content after government agrees to last minute amendments to media code

“After further discussions with the Australian government, we have come to an agreement that will allow us to support the publishers we choose to, including small and local publishers. We’re restoring news on Facebook in Australia in the coming days,” Ms Brown said.

“Going forward, the government has clarified we will retain the ability to decide if news appears on Facebook so that we won’t automatically be subject to a forced negotiation.”

She said the company would continue to invest in news globally but would resist efforts by media companies “to advance regulatory frameworks that do not take account of the true value exchange between publishers and platforms like Facebook”.

The amendments include inserting a two-month mediation period into the code to give the parties more time to broker agreements before they are forced to enter a binding final offer arbitration process.

Another amendment will also clarify that the government will consider any commercial deals already struck between the parties before the Treasurer formally designates the code as applying to Facebook and Google. A new provision will also require the government to give the digital platforms one month’s notice before they are designated.

The code, which is backed by Labor and will become law, sets out a framework for forcing Google and Facebook to broker commercial deals with media companies for the value they obtain from having news content on their platforms. Facebook and Google have both fiercely resisted the code, describing it as “unworkable” and threatening to curtail their services in Australia if it passed unamended.

Facebook has been contacted for comment.

Treasurer Josh Frydenberg has spoken with Facebook global chief Mark Zuckerberg multiple times in recent weeks in a bid to resolve the social media giant’s concerns with the code.

Google also threatened to exit Australia in protest against the code, but later struck multi-million dollar deals with major Australian publishers, including Nine Entertainment Co, which publishes this masthead, for the use of their content.

Facebook attempted to restart negotiations with Nine and News Corp late last week, but the parties have been unable to resolve an impasse over Facebook’s demand for a so-called “poison pill” clause. The clause would allow Facebook to terminate the deals struck with publishers at any time, including once the new laws are passed.