The law is aimed at bringing the EU's rules on copyright into the 21st century to help artists and publishers whose works have been widely dispersed on the internet.
A first reading of the new copyright directive was passed Tuesday in Strasbourg by lawmakers at the European Parliament. But it still needs to be ratified by ministers at the Council of Europe — this is the institution that brings together the different EU ministers according to their portfolios.
The planned reforms, which have been in the making since 2016, have led to a heated battle that pits large tech companies including Facebook, Google and Twitter against artists and media firms.
Google has been particularly critical of the law, which threatens to impact the business model of its video sharing service YouTube and news aggregation platform Google News.
Following the vote in the European Parliament, the tech giant said the new law has seen improvement from an original draft, but will still lead to legal uncertainty and hurt the creative industries.
"The details matter, and we look forward to working with policy makers, publishers, creators and rights holders as EU member states move to implement these new rules," a spokesperson for the company said.
Twitter said it remained concerned about the potential ramifications of Tuesday's vote for the internet.
"We will continue to engage with EU member states and civil society as the implementation process evolves," a spokesperson for the firm said.
Facebook declined to comment.
One section of the law could result in the implementation of pre-filtering systems that block internet users from sharing memes and other content containing copyright-protected material.
Another part of the copyright overhaul would require news aggregation services like Google's to negotiate commercial licenses with publishers in order to post snippets or links to articles.