"Google and Facebook need media, but they don't need any particular company, and that meant media companies couldn't do commercial deals with Facebook or Google", he told the national radio broadcaster, ABC radio, on Thursday.
Their tussle began with an investigation by Australia's consumer watchdog into Google and Facebook's online advertising dominance, which has drained cash away from traditional news organisations.
'News publishers and governments have worked together to fight for fair treatment.
'In a recent consultation of the Commission, over 800 written submissions were received with many expressing concerns about the dominance of social media platforms like Facebook and Google in Irish society'.
The code has been called a "world-first" by Frydenberg and is the first law globally to successfully compel the tech giants to compensate news publishers for displaying their content on their sites.
Facebook has restored access to news for its Australian users after reaching agreement with the government on a landmark law requiring it and other tech firms to pay for journalistic content. Since their emergence around the turn of the century, Google and Facebook have been largely unregulated and have grown into two of the world's largest and most profitable companies.
Ahead of Parliament passing the law, Facebook defended its blanking out of media outlet pages for Australian users, while pledging to invest at least $1 billion (€822 million) to support journalism. Following last-minute negotiations with Facebook, the final version of the law allows for an additional round of negotiation before arbitration and recognizes when Facebook reaches agreements with publishers separately.
"We neither take nor ask for the content for which we were being asked to pay a potentially exorbitant price", he said.
Google will pay for news content that appears on its "Showcase" product and Facebook is expected to pay providers who appear on its "News" feature, which is to be rolled out in Australia later this year.
In return for the changes, Facebook agreed to lift a six-day-old ban on Australians accessing and sharing news.
The new media code took days of backward and forward negotiations between Facebook creator, Mark Zuckerburg, and treasurer Josh Frydenberg.
Some lawmakers and publishers have warned that could unfairly leave smaller media companies out in the cold, but both the government and Facebook have claimed the revised legislation as a win.
Former UK Deputy Prime Minister Clegg said Facebook drove some 5.1 billion such "free referrals" to Australian news publishers a year ago.
"The changes the government's done are things that either don't matter much or are just to clarify things that, at least in Facebook's mind, were unclear", Sims told the Reuters news agency. "Maybe other countries might consider that rather than looking through competition law, which is what Australia's done".
Sims said he was not surprised that the platforms would strike deals with the large city businesses first.
Disclosure: CBC/Radio-Canada has business partnerships with Facebook for content distribution and with Google for services that encompass mobile distribution, data storage and communication tools.