Google and News Corp sign global multi-year licensing deal

"Google Search is inextricably intertwined with news and publishers do not voluntarily provide their content", William Easton, Facebook's managing director for the region, wrote. Both Google and Facebook have threatened to quit the Australian market if the law is passed.

Meanwhile, Google has started paying select media outlets, including those in the U.K., Australia and Argentina, to display articles on its news app and has set aside $1 billion to cover the program's first three years.

Australia, France, Germany, the European Union and Britain are all moving to varying degrees toward stronger regulation of social-media platforms in terms of hate speech and compensation for news publishers.

Nine signed a letter of intent with Google for a deal worth more than AU$30 million ($23 million) a year for five years, The Sydney Morning Herald, which is owned by Nine, reported.

On Monday, Nine rival Seven West Media said it had reached a deal that local media reported would also involve the United States company paying it AUD 30 million (roughly Rs. 170 crores) a year.

Robert Thomson, chief executive of News Corp, said that the deal would have "a positive impact on journalism around the globe as we have firmly established that there should be a premium for premium journalism".

The Australian deals with Google are being negotiated under Google's own model, News Showcase.

Mr Murdoch's company has been at war for years with Google and Facebook over links to News Corp's work being shared online without payments to Mr Murdoch's firm.

"The landmark three-year agreement also includes the development of a subscription platform, the sharing of ad revenue via Google's ad technology services, the cultivation of audio journalism and meaningful investments in innovative video journalism by YouTube", News Corp said in a statement.

Facebook has a comparable product called Facebook News, but it's not available in Australia.

The way the law is worded, the government only imposes a negotiator to set fees if the media company and Google can't come to an arrangement privately.

Frydenberg suggested that Google's threat to quit Australia had receded as the "speed of these negotiations has picked up".

"We have sought to keep the major players in Australia", Frydenberg said. "Google had talked about leaving Australia". We never wanted that to take place.

"Any monies from these deals need to end up in the newsroom, not the boardroom", Strom said.

An example of how Google's News Showcase panels will be laid out.

It follows pushback from Google, which said in a blog post last month that the "special treatment" would "delay important updates for our users" and disadvantage every other website.