Ahead of ‘pay for news’ rules, Google, FB inch towards deals with Australian media firms

Google and Facebook are “very close” to deals with major Australian media to pay for journalism, a top government official said on Monday, as the tech giants scramble to avoid landmark regulation that would force them to pay for news.

Australian Treasurer Josh Frydenberg said talks with Facebook CEO Mark Zuckerberg

and Google CEO Sundar Pichai had made “great progress” in resolving a standoff being closely watched around the world.

Seven West Media, meanwhile, became the largest Australian news media business to strike a deal with Google to pay for journalism in a partnership announced on Monday.

Google and the publicly listed broadcast television, print and online publishing company jointly announced they had agreed on a “long-term partnership” after weekend discussions Australian government ministers had with Zuckerberg and Pichai.

Kerry Stokes, chairman of Seven West Media, which owns 21 publications, thanked the government and the Australian competition regulator for their proposed law that the parliament will consider on Tuesday.

“Their outstanding leadership on the implementation of the proposed news media bargaining code has resulted in us being able to conclude negotiations that result in fair payment and ensure our digital future,” Stokes said in a statement.

“The negotiations with Google recognise the value of quality and original journalism throughout the country and, in particular, in regional areas,” Stokes added.

The deal with Seven West Media was struck under Google’s own model, News Showcase.