Premium journalism: Google agrees to pay News Corp for showcasing its news

Google and Facebook had earlier pushed back against the proposed legislation with Google threatening to completely exit the island country. Facebook has also warned that it would ban Australian users to share news on the platform.

Tech giant Google has agreed to pay News Corp, a global, diversified media and information services company in return for providing stories from its news sites.

The deal was struck following a standoff between Google and the Australian government over the proposed legislation that would deem tech giants like Google and Facebook to pay for the news content showcased on its platform.

"Today's agreement with News Corp covers a wide range of our products such as News Showcase, YouTube, Web Stories, Audio and our ad technology," Google's Don Harrison, President, Global Partnerships and Corporate Development said in a statement. He added that News Showcase has partnerships with over 500 publications around the world and hopes to announce more partnerships soon.

The three-year deal would allow Google to feature content from several News Corp publications including The Wall Street Journal, Barron's, MarketWatch, and the New York Post in the UK: The Times and The Sunday Times, and The Sun; and in Australia a range of news platforms, including The Australian, Sky News, and multiple metropolitan and local titles.

Robert Thomson, Chief Executive of News Corp, said in a statement 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.

Google and Facebook had earlier pushed back against the proposed legislation with Google threatening to completely exit the island country. Facebook has also warned that it would ban Australian users to share news on the platform.

Microsoft then endorsed the legislation and said that its search engine Bing would remain in Australia and that it is prepared to share revenue with news organizations under the rules that Google and Facebook are rejecting.

"Our endorsement of Australia's approach has had an immediate impact. Within 24 hours, Google was on the phone with the Prime Minister, saying they didn't really want to leave the country after all. And the link on Google's search page with its threat to leave? It disappeared overnight. Apparently, competition does make a difference," Microsoft president Brad Smith pointed out.