Australia’s bold move to make Google and Facebook pay for news content they share turned into a high-stakes drama when the tech giants threatened to pull out of the country. But instead of leaving Google and Facebook cut deals worth $166 million annually with local news outlets, avoiding the full force of the new laws. This struggle between tech behemoths and news organizations is now influencing similar legislation in California, where lawmakers are grappling with how to balance the needs of struggling media with the power of Silicon Valley. As global debates about tech regulation heat up, Australia’s experience offers a dramatic preview of what might come next.

Google threatened to leave Australia three years ago when lawmakers there took on the titans of Big Tech, drafting laws to make Google and Facebook pay for news stories they posted on their websites.

Google Australia Managing Director Mel Silva stated in a Senate hearing that the business would have “no real choice”

As California considers legislation similar to Australia’s, where Big Tech giants like Google and Facebook were forced to pay for news content, the battle between Silicon Valley and the news industry intensifies. Australia’s experience offers a glimpse into the challenges ahead, as Google initially threatened to pull out but ultimately struck deals with Australian news outlets worth $166 million annually. The outcome in California could reshape how tech companies interact with media globally, especially as other nations watch closely, considering their own regulations.