Australia poised to approve new media code

Australia is on track to push through its new media code for digital companies, according to the country’s communications minister.

Google has threatened to withdraw from the Australian search market amid a dispute over the new code, which will require companies like Google and Facebook to pay for news content.

Speaking to CNBC's 'Street Signs Asia', Paul Fletcher explained: "This bill will pass into law fairly soon. The democratically elected government of Australia expects that businesses that are doing business in Australia will comply with our laws."

Google currently constitutes more than 90 percent of the country's search market, but the introduction of the media code could change the landscape markedly.

Earlier this month, Rod Sims, the chair of the Australian Competition and Consumer Commission, insisted that Google must decide its own future in the country.

Sims said it's the tech giant's "call" as to whether it decides to leave the market or not.

He explained: "It’s not what we want to happen. But obviously, at the end of the day, you’re just not going to be able to have a negotiation, have proper public policy, if you have to do whatever they want.

"If they then left the country, that would be very unfortunate but ultimately that’s got to be their call."

Prior to that, Microsoft slammed Google's attitude towards the Australian search market.

Brad Smith, the President of Microsoft, said in a statement: "While other tech companies may sometimes threaten to leave Australia, Microsoft will never make such a threat.

"We appreciate what Australia has long meant for Microsoft's growth as a company, and we are committed to supporting the country's national security and economic success."

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