The federal government says it won't be responding to "coercion or heavy-handed tactics" by digital platforms.
Treasurer Josh Frydenberg was reponding to Facebook's statement that it will stop news being posted from Australia if Canberra goes ahead with a mandatory code for the payment of publishers for their premium news.
"We won't be bullied no matter how big the international company is," he told a media briefing. "No matter how powerful they are. No matter how valuable they are."
He says the government recognises the technology and the services provided by Facebook and Google.
"People love them," he says. "And we want those to continue here in Australia."
However, the government also believes the reforms recommended by competition watchdog the ACCC will lead to a more sustainable media environment.
"Australian consumers will make their own choices about which services they consume," he says.
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