Tech giants ‘close’ to deals with Aussie media

Google and Facebook are "very close" to deals with major Australian media to pay for news, a top government official said yesterday, as the tech giants scramble to avoid landmark regulation.

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.

Australia is poised to adopt legislation that would force digital companies to pay for news content, something that would create a global precedent and, according to Facebook and Google, wreck the way the internet works.

The companies have threatened to partially withdraw services from the country if the rules become law, sparking a war of words with Canberra.

But that disagreement appeared to ease yesterday, with Frydenberg telling public broadcaster ABC talks with the companies "made great progress over the course of the weekend".

The agreements could be enough to see Facebook and Google avoid the most severe parts of the legislation -- including binding arbitration to ensure they are not using their online advertising duopoly to dictate terms in deals with media companies.

Following Frydenberg's remarks, SevenWest Media, owner of broadcaster 7NEWS and The West Australian newspaper, announced yesterday a new agreement for its content to be hosted on Google's News Showcase product.