(Photo: Reuters)

The government’s  action would not only cost Facebook tens of millions of dollars each year, but also seriously affects the corporation’s reputation, and could lead to a wave of  Facebook ad boycotts  in Australia.

In a statement issued on Monday morning, Australian Finance Minister Simon Birmingham said that the Australian government was maintaining its stance on the News Media Bargaining Code, and would  review its advertisements on Facebook.

That said, the Australian government is still moving forward with the proposal, which could be made law once approved by the Senate. The proposal has already been approved by the country's lower house. If the bill is passed, Australia will become the first country in the world to adopt a law requiring tech companies to pay the country's press agencies for news.