Australian users and publishers will be restricted from sharing or viewing domestic or international news.

Overseas users also will be unable to access Australian news content.

Facebook claims it has been left with no choice.

"The proposed law fundamentally misunderstands the relationship between our platform and publishers who use it to share news content," the company said in a statement on Thursday.

"It has left us facing a stark choice: attempt to comply with a law that ignores the realities of this relationship or stop allowing news content on our services in Australia.

"With a heavy heart, we are choosing the latter."

Many users have already reported this morning being unable to see content on The Border Mail's Facebook page.

However, the Border content our readers love will not be affected by the changes.

Our network of emails (sign up below), push notifications, Google Showcase and other social media streams remain unaffected.

For digital subscribers to bordermail.com.au, your subscriptions will not be impacted and our trusted content will continue to be published as usual.

Australian Community Media (the publisher of The Border Mail) managing director Tony Kendall said the decision was a disappointment.

"We've worked with Google to get an outcome which is good for the business but, more importantly, for consumers as well," Mr Kendall said.

"Facebook's decision we feel is going to stop quality journalism being shared more widely in communities across Australia.

"Has Facebook's decision made it a less attractive proposition for big brand advertisers, given that the platform will now be barring quality news content?"

The move is not entirely unexpected.

Facebook first made the threat to ban news for Australians in August and repeated the ultimatum before a Senate inquiry in January.

Communications Minister Paul Fletcher says the decision raises serious questions.

"It certainly raises issues about the credibility of information on the platform," he told 2GB radio.

As Facebook restricts the sharing of news, Google is striking deals in Australia to pay for journalism.

IN OTHER NEWS

News Corp has become the latest publisher to sign a lucrative deal with Google.

The internet giant has already struck deals with Seven West Media and Nine Entertainment, and is in talks with public broadcasters ABC and SBS, as well as Guardian Australia.

The three-year Google deal with News Corp goes beyond the Australian market, extending to the publisher's titles in America and the United Kingdom.

No other news publisher has reached a single deal with Google across multiple countries.

The media bargaining code is before the Senate after clearing the House of Representatives overnight.

The legislation, which has bipartisan support, will give the treasurer power to choose which companies are subject to it.

Under the code, a panel - decided by the negotiating parties or the media watchdog - would hear offers and make a decision on payment for news content.

Facebook executive Campbell Brown denied the social media giant stole news content.

"Publishers choose to share their stories on Facebook," he said.

"From finding new readers to getting new subscribers and driving revenue, news organisations wouldn't use Facebook if it didn't help their bottom lines."

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