Google has warned that it might stop providing links to New Zealand news if a proposed law that mandates payments for news content goes through. The Fair Digital News Bargaining Bill aims to force tech companies to compensate local media organizations for using their articles, and Google has voiced strong opposition, saying it would withdraw links to news outlets on platforms like Google Search and Google News.
New Zealand’s government began work on this legislation under the previous Labour administration, hoping to address imbalances in how tech giants profit from news content. The bill has been under review and could still face revisions to align with similar laws, like one introduced in Australia. Google’s New Zealand Country Director, Caroline Rainsford, stated in a blog post that the bill, as it stands, would necessitate significant changes in how Google operates within the country’s news industry.
Why Google Opposes the Bill
At the heart of Google’s criticism is the belief that the proposed law would undermine the open nature of the web. According to Rainsford, the bill’s financial requirements would introduce too much uncertainty and risk, particularly for smaller publishers. Google has long maintained that it provides substantial benefits to news organizations by driving web traffic to their sites, and forcing tech platforms to pay for links contradicts how the internet works.
A study commissioned by New Zealand’s Ministry for Culture and Heritage suggested that there wasn’t enough justification to mandate payments for linking news articles, adding fuel to the debate. Despite this, the bill has gained political momentum and appears poised to pass, even though there is opposition from certain government partners, including the ACT party.
Impact on Smaller News Outlets and Business Operations
One of Google’s key arguments against the bill is the potential harm to smaller, independent news publishers. The company claims that laws like this tend to disproportionately benefit large media corporations, leaving smaller outlets at a disadvantage.
Rainsford also pointed out that the financial exposure introduced by the bill is “uncapped,” meaning Google could face unpredictable costs, which would complicate its ability to invest in New Zealand’s news ecosystem.
Google’s existing agreements with New Zealand publishers, which include revenue-sharing partnerships and other forms of support, would likely be affected if the bill becomes law. The company currently pays millions each year through its News Showcase program, which includes about 50 local publications. However, these agreements could be abandoned if Google pulls news links from its platforms in New Zealand.
Seeking an Alternative Path
While Google has been critical of the bill, the company is still engaged in discussions with the government, proposing alternative solutions that would avoid the disruptions caused by a “link tax.” Rainsford expressed hope that a more balanced approach could be found, one that supports New Zealand’s news industry without harming smaller outlets or undermining the open web. However, the future of these negotiations remains uncertain, and it’s unclear if the government will be swayed by Google’s proposals.
New Zealand’s Minister for Media and Communications, Paul Goldsmith, has acknowledged the ongoing discussions and stated that the government is still in the consultation phase. However, with political support coalescing around the bill, it seems likely that the law will move forward.
Last Updated on November 7, 2024 2:39 pm CET