The Morrison government is introducing laws to regulate commercial relationships between Facebook, Google and Australian news businesses.

WHY IS IT NEEDED?

Google and Facebook derive a benefit from the ability to make Australian news content available to their users.

Australian news businesses have had to accept commercial deals with the platforms that are less favourable than they would otherwise agree to.

Intervention is needed to address this imbalance because of the public benefit of news and the importance of a strong independent media in a well-functioning democracy.

For every $100 spend on advertising, $53 goes to Google, $28 goes to Facebook and $19 goes to other media.

WHAT IS THE CODE?

The government wants good faith commercial deals to be struck outside the code.

But if the platforms and news organisations are unable or unwilling to reach an agreement "final offer arbitration" will take place.

The arbiters will take into account the benefits traditional news media businesses get by having eyeballs on their product.

The digital platforms will also need to adhere to a series of minimum standards.

WHO IS INCLUDED?

* Facebook and Google.

* ABC, SBS and Australian commercial news media organisations.

Australian Associated Press