The new controversial directive is meant to address copyright infringements and allow news organisations collect more licensing fees from news aggregators like Facebook and Google News.
A proposed law has divided the tech world as the realities of a new economy come to dominate how people create and view content online.
EU lawmakers reject recommendations seeking overhaul of copyright rules by a vote of 318 to 278 and 31 abstentions, amid criticism the directives, if passed, would have threatened online freedom.
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