Google has issued a stern warning, threatening to remove links to New Zealand news content and terminate current agreements with local publishers if the proposed Fair Digital News Bargaining Bill becomes law.
The New Zealand Herald reports that global tech giant Google has threatened to sever ties with New Zealand news outlets if the government proceeds with the Fair Digital News Bargaining Bill. The proposed legislation, which aims to force tech companies like Google and Meta (Facebook) to pay publishers for their content, has been met with strong opposition from the search engine giant.
Caroline Rainsford, Google New Zealand’s country director, expressed the company’s deep concerns about the bill, calling it a “link tax” that would require Google to pay for simply linking to news articles. She stated, “If the Bill were to proceed on its current trajectory and became law, we would be forced to make significant changes to our products and news investments.”
These changes, according to Rainsford, would include discontinuing the linking of news content on Google Search, Google News, and Discover surfaces in New Zealand. Furthermore, Google would terminate its current commercial agreements and ecosystem support with New Zealand news publishers.
The news media industry has hit back at Google’s threats, accusing the company of deliberately misrepresenting the legislation and engaging in what the News Publishers Association has described as “corporate bullying.” Andrew Holden, the association’s public affairs director, emphasized that the Bill is not a tax but rather a means to create an environment for fair commercial negotiations between media companies and tech giants.
Holden cited recent cases against Google in the United States, quoting Attorney General Merrick Garland, who described one case as “a historic win for the American people” and stated that no company is above the law. The News Publishers Association believes that the New Zealand government should be able to make laws that strengthen democracy without being subjected to what he calls corporate bullying tactics.
However, not everyone is in favor of the proposed bill. Act leader David Seymour, whose party does not support the legislation, warned that the government is “playing chicken” with Google and that New Zealanders could be the ones to lose out if the search engine follows through with its threats. Smaller media outlets, in particular, could suffer as they would be denied the opportunity to connect with new audiences via search results.
Google’s New Zealand operation is substantial, with the company paying nearly $1 billion to its international parent in inter-company service fees for the year ending December 31, 2023. This figure serves as a true indication of the size of Google’s business in New Zealand.
In other countries, such as Canada, Google has been ruled exempt from similar legislation after agreeing to pay an annual sum of money to be shared among news media companies. The tech giant would likely want a similar arrangement in New Zealand, with the minister administering the pool of money. However, the media industry believes that any such pool would fall short of what they should be paid and that Google should not be exempt from the legislation.
Read more at the New Zealand Herald here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
