WELLINGTON (Reuters) – Google said on Friday it will stop linking to New Zealand news articles and ditch the agreements it has with local news organisations, if the country’s government goes ahead with a law to force tech giants to pay a fair price for content that appears on their feeds. #GoogleNewZealandNews
In July, the New Zealand government confirmed it would advance legislation initiated by the previous Labour Party-led government. This legislation aims to ensure fair revenue sharing between digital platforms and news media entities. Currently, the proposed legislation is under review and may undergo changes to align more closely with Australian laws.
Caroline Rainsford, Google New Zealand Country Director, stated in a blog post that the current bill would force significant changes. If the bill becomes law, Google will need to adjust its products and investments accordingly.
“We’d be forced to stop linking to news content on Google Search, Google News or Discover surfaces in New Zealand and discontinue our current commercial agreements and ecosystem support with New Zealand news publishers,” Rainsford said.
Google, owned by Alphabet Inc, is concerned that the bill contradicts the principle of an open internet. Additionally, the uncapped financial exposure may harm small publishers and create business uncertainty.
New Zealand Minister for Media and Communications Paul Goldsmith said he was considering the range of views in the sector.
“We are still in the consultation phase and will make announcements in due course,” he said in a statement. “My officials and I have met with Google on a number of occasions to discuss their concerns, and will continue to do so.”
Although minority government coalition partner ACT does not support the legislation, it is likely to find enough cross party support to pass once finalised. #GoogleNewZealandNews
Australia introduced a law in 2021, empowering the government to require internet companies to negotiate content supply deals with media outlets. A review released by the Australian government in 2022 found that the law largely worked. Consequently, this legislation has influenced discussions about similar laws in other countries.
Implications of Google’s Decision on New Zealand News and Local Journalism
Moreover, this move reflects broader tensions between tech companies and governments worldwide. As a result, news organizations worry about losing vital traffic and revenue sources. Furthermore, the debate highlights the importance of Google New Zealand news for maintaining a vibrant democratic discourse.
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