Facebook cuts off news in Australia in fight over payments

Facebook Inc. has started restricting the sharing of news on its service in Australia, defying a controversial proposed law that would require technology companies to pay publishers when their articles are posted by users.

The ban constitutes the strongest action yet in response to the proposed legislation, which would force companies like Facebook and Alphabet Inc.’s Google to pay publishers for the value their articles generate on the digital platforms. News outlets have demanded such payments, arguing they should be fairly compensated for their journalism as Google and Facebook capture much of the advertising market.

Facebook’s decision blocks those in Australia from sharing news stories and stops users globally from sharing articles from Australian publishers. The action threatens to cut off one of the most widely used ways for people to access news and information online.