Sydney, Aug. 1 -- The Australian government has ordered Facebook and Alphabet's Google to share revenue generated from news articles, adding to growing global regulatory and political pushback against the digital giants.

The two companies will have to negotiate with traditional media on remuneration in good faith, treasurer Josh Frydenberg said on Friday. If no agreement is reached, there will be a binding arbitration process and penalties for breaching the code of up to A$10 million ($7 million) or 10% of local revenue.

The move aims to correct what the government says is a power imbalance between two of the world's most profitable companies and a local media industry that's bleeding jobs as it loses advertising revenue to digital platfo...