Assistant US Trade Representatives Daniel Bahar and Karl Ehlers said in a submission to the Senate panel looking into the legislation that the "US Government was concerned that an attempt, through legislation, to regulate the competitive positions of specific players in a fast-evolving digital market, to the clear detriment of two US firms, may result in harmful outcomes".

"There may also be long-lasting negative consequences for US and Australian firms, as well as Australian consumers," the two American officials said.

"While the revised draft has partially addressed some US concerns — including an effort to move towards a more balanced evaluation of the value news businesses and platforms offer each other in the context of mandatory arbitration — significant issues remain."

The Australian Government introduced the laws into Parliament on the last sitting day of 2020. But even before that, it had backed down on the News Media and Digital Platforms Mandatory Bargaining Code.

Three concessions were given to Google and Facebook. They will be able to put a value on the service they provide to a news organisation in monetary terms — for example, Google will be able to say its search results were worth so much — before the amount that they should pay to that organisation is set.

In response to the US submission, Treasurer Josh Frydenberg said the government “is committed to proceeding with a mandatory code” that would address “the bargaining power imbalances with digital platforms and media companies".

The Senate will hold public hearings on the legislation on 22 January.