The bill means that Google and Facebook will be forced to replace local media companies, or be punished with hefty fines.
It is one of the world's most aggressive actions against the two American IT giants.
- If this version of the law goes through, it gives us no choice but to stop making Google searches available in Australia, says the company's local manager Melanie Silva.
"We do not respond to threats"
Prime Minister Scott Morrison, whose Conservative government has presented the bill following demands from the country's largest news organizations, responds to the threat:
- Australia creates the rules for what you can do in Australia.
It is done in our Parliament.
Those who want to work in Australia are very welcome to do so, but we do not respond to threats, he says.
To be decided in February
The proposal was presented at the end of last year and the parliament in Canberra is expected to vote on the law in mid-February at the earliest.
- This is similar to what happened in France, they are the first to apply the EU's new copyright rules.
Google was forced to the negotiating table and now they have a deal with French news media about compensation, says Alexander Norén, SVT's tech correspondent.