FACEBOOK has followed through on its threat to ban Australians sharing news on its platform in response to a proposed media bargaining code.

Australian users and publishers will be restricted from sharing or viewing domestic or international news.

Overseas users also will be unable to access Australian news content.

Facebook claims it has been left with no choice.

"The proposed law fundamentally misunderstands the relationship between our platform and publishers who use it to share news content," the company said in a statement on Thursday.

"It has left us facing a stark choice: attempt to comply with a law that ignores the realities of this relationship or stop allowing news content on our services in Australia.

"With a heavy heart, we are choosing the latter." AAP