Australia has passed a new law allowing the government to impose financial penalties on tech giants that refuse to pay for local news content. The legislation targets major digital platforms that benefit from news distribution without compensating Australian publishers.

The law, which amends existing media bargaining frameworks, gives regulators authority to set mandatory payment terms for large tech companies. Companies failing to reach voluntary agreements with news businesses can face significant fines based on their local revenue.

This move follows years of disputes between Google and Facebook parent Meta with Australian media outlets. The original 2021 news media bargaining code forced both platforms to negotiate payments after public threats to withdraw services.

Australian Prime Minister Anthony Albanese framed the law as protecting domestic journalism jobs. The government estimates the new measures could generate millions in additional revenue for local newsrooms annually.

Industry analysts note the law may influence similar efforts in Canada and Europe, where lawmakers are crafting comparable regulations for Big Tech's treatment of publisher content.