'Inevitable' Google and Facebook will pay news publishers

Australia's treasurer thinks it's "inevitable" Google and Facebook will pay news publishers.

The tech giants are being pressured by the Australian government to pay for news content, and Josh Frydenberg predicted they'll eventually relent on the issue.

He said: "It seems that digital giants did themselves a big disservice last week when they very openly and publicly threatened the Australian public with pulling out of Australia effectively with search if legislation proceeds as it currently stands."

The Australian government is determined to to become a "world leader" in regulating firms like Google and Facebook, according to Frydenberg.

And he's convinced that the tech companies will ultimately ease their stance.

He said: "My view is that it is inevitable that the digital giants will be paying for original content and the choice for Australia, is: are we world leaders … and first off the rank when it comes to putting in place such a code? Or we can follow others further down the track when they do it."

Earlier this month, Google Australia managing director Mel Silva claimed the approach of the Australian government is at odds with "how the internet works".

Silva said: "We do not see a way, with the financial and operational risks, that we could continue to offer a service in Australia."

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