The US search and social media giants have pressed Australia to soften the legislation, with senior executives from both companies holding talks with Australian Prime Minister Scott Morrison and Frydenberg.
Google last week launched a platform in Australia offering news it has paid for, striking its own content deals with publishers in a drive to show the proposed legislation is unnecessary.
Last month Reuters said it had signed a deal with Google to be the first global news provider to Google News Showcase. Reuters is owned by news and information provider Thomson Reuters.
Google and a French publishers' lobby also agreed in January to a copyright framework for the tech firm to pay news publishers for content online, a first for Europe.