Google threatens to cut New Zealand news links if compensation bill passes

Lauren Taylor

GOOGLE ISSUED A WARNING TO NEW ZEALAND, THREATENING TO CUT OFF LINKS TO LOCAL NEWS SITES IF THE GOVERNMENT PROCEEDS WITH A PROPOSED LAW AIMED AT COMPENSATING NEWS PUBLISHERS FOR THEIR CONTENT.

GOOGLE’S COUNTRY DIRECTOR FOR NEW ZEALAND LABELED THE PROPOSED FAIR DIGITAL NEWS BARGAINING BILL A ‘LINK TAX,’ STATING THAT IF PASSED IN ITS CURRENT FORM, GOOGLE WOULD STOP LINKING TO NEWS CONTENT ACROSS ALL ITS PLATFORMS, INCLUDING GOOGLE SEARCH AND GOOGLE NEWS. THIS WOULD ALSO DISCONTINUE EXISTING AGREEMENTS WITH NEW ZEALAND PUBLISHERS.

GOOGLE EMPHASIZED THAT THIS OUTCOME WOULD BE DETRIMENTAL, NOT JUST FOR THE COMPANY… BUT FOR THE LOCAL NEWS PUBLISHERS AND KIWIS WHO RELY ON THEM FOR RELIABLE INFORMATION. GOOGLE HAS BEEN A SIGNIFICANT PLAYER IN SUPPORTING NEW ZEALAND’S NEWS ECOSYSTEM, CONTRIBUTING MILLIONS TO LOCAL PUBLICATIONS THROUGH PROGRAMS LIKE GOOGLE NEWS SHOWCASE.

THE LEGISLATION… MODELED AFTER SIMILAR LAWS IN AUSTRALIA AND CANADA, AIMS TO ENSURE THAT DIGITAL PLATFORMS COMPENSATE NEWS ORGANIZATIONS FOR THE VALUE OF THEIR JOURNALISM. HOWEVER… GOOGLE ARGUES THAT PAST EXPERIENCES IN OTHER COUNTRIES SHOW THAT LINK TAXES HAVE NOT EFFECTIVELY SUPPORTED JOURNALISM. INSTEAD, THEY OFTEN LEAD TO PLATFORMS DISENGAGING FROM NEWS CONTENT ALTOGETHER.

CRITICS WARN THAT IF GOOGLE FOLLOWS THROUGH ON ITS THREAT, BOTH NEW ZEALAND AUDIENCES AND MEDIA COMPANIES WOULD BE WORSE OFF, ESPECIALLY SMALLER OUTLETS THAT RELY HEAVILY ON SEARCH TRAFFIC TO CONNECT WITH AUDIENCES.

NEW ZEALAND’S MEDIA AND COMMUNICATIONS MINISTER ACKNOWLEDGED GOOGLE’S CONCERNS, STATING THEY ARE STILL CONSULTING WITH VARIOUS STAKEHOLDERS. THEY ESTIMATE THE BILL WOULD GENERATE OVER 30-MILLION DOLLARS.

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FOR STRAIGHT ARROW NEWS… I’M LAUREN TAYLOR.