The code will prohibit the platforms discriminating between news media businesses,ensuring Australian outlets'content is not removed from the platforms or ranked lower than international rivals.

Ahead of the code's release,the businesses havethreatened to wind back the availability of Australian news content on their services and downplayed its value for their revenue.

Consultation on the draft code will last until the end of August,with legislation to follow. Mr Frydenberg said deals under the code could be struck within six months of the code coming into effect.

To be eligible for bargaining under the code,media businesses will have to be focused on"core news"reporting on publicly significant issues for Australian audiences,be subject to professional editorial standards and ethics,and have annual revenue exceeding $150,000. The Australian Communications and Media Authority will determine eligibility.

Australian Competition and Consumer Commission chair Rod Sims said the proposed model would prevent"unproductive and drawn-out negotiations"while addressing the bargaining power imbalance,providing fair compensation and protecting the availability of Australian content on the platforms.

"We believe that our final offer arbitration proposal provides a compelling incentive for parties to put forward fair and reasonable proposals,given each has just one chance to make an offer,and only one offer can prevail,"Mr Sims said.

Whilepublic broadcasters ABC and SBS had expressed an interest in benefiting from revenue-sharing deals with the tech companies,they have been excluded from the key element of the code. However,they will benefit from the other requirements around data and algorithm transparency.

Communications Minister Paul Fletcher said it was important for Australia's democracy to have a sustainable news media ecosystem and the code was focused on businesses whose viability and news production was threatened by advertising revenue losses.

"That is a policy problem that does not arise for Australia's public broadcasters,which have secure government funding,and accordingly the ABC and SBS are not the policy focus when it comes to remuneration aspects of the proposed mandatory code,"he said.

Initially,Google and Facebook will be the only tech companies captured by the rules. The two companies have absorbed the vast majority of advertising revenue that used to go to media companies. Under the proposed legislation,the treasurer will be able to include other tech businesses in the bargaining code in the future.

Mr Sims said smaller media businesses could team up to bargain collectively under the code,which allows for either individual or collective bargaining.

Following aNSW Supreme Court ruling that held media companies legally responsible for user comments on their Facebook posts,the code will also require the digital platforms to disable comments on posts.