The Federal Government announced the development of a landmark mandatory code of conduct between tech giants and Australian news media companies.

The code will ensure that digital platforms, such as Facebook and Google, pay for the content they share that was created by traditional media outlets.

Nine Network CEO Hugh Marks told Ray Hadley it’s an important step for Australia as these companies have made billions of dollars off of Australian content.

“I congratulate the government on taking this really proactive and positive step.

“[These companies are] creating immense value for their businesses based on the fact that we have to engage with these platforms, we have to reach our audience through them, but they’re the ones that create the value and make the money and we make nothing.

“It’s just a recognition of that imbalance and that the system has to be rectified.”

Mr Marks is confident the code will be finished in the near future.

“I’m hopeful this is something that we can really get a lot of progress on over the next three months. I don’t think it’s a complicated model that needs to be thought up, there are plenty of models that exist.”

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Minister for Communications, Cyber Security and the Arts Paul Fletcher told Ray Hadley this mandatory code is about recognising the value of our journalists and their work.

“It has to deal with the terms on which Australian media businesses are properly remunerated for the use of their content, because producing content costs money.

“We need to have this backed by the rule of law, by the force of law, and that’s why it’s a mandatory code.

“One of the big things here is that we need to recognise the value of journalism, and Australian journalists telling Australian stories.

“That content is attracting people to the digital platforms, but at the moment, they’re not producing it and they’re not paying fairly for it.”

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Image: Getty