Google says it will stop linking to New Zealand news if proposed new law passes

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FILE PHOTO: FILE PHOTO: The logo for Google is seen at a Google store in Manhattan, New York City, U.S., November 17, 2021. REUTERS/Andrew Kelly/File Photo

New Zealand's proposed new law will force tech giants like Google to pay a fair price for content that appears on their feeds.

PHOTO: REUTERS

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WELLINGTON – Google said on Oct 4 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

.

The New Zealand government in July confirmed it will progress legislation started by the previous Labour Party-led government that ensures fair revenue sharing between operators of digital platforms and news media entities. The proposed legislation is still in review and is likely to see changes, including some to bring it

more in line with Australian legislation

.

Google New Zealand country director Caroline Rainsford said in a blog post that if the Bill as it currently stands becomes law, Google will be forced to make significant changes to its products and investments.

“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,” Ms Rainsford said.  

Google, which is owned by Alphabet, is concerned that the Bill is contrary to the idea of the internet being open, that it will be harmful to small publishers and that the uncapped financial exposure provides business uncertainty.

New Zealand Minister for Media and Communications Paul Goldsmith said he is 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 Google on a number of occasions to discuss its concerns, and will continue to do so.”

Although minority government coalition partner ACT New Zealand does not support the legislation, the Bill is likely to find enough cross-party support to pass once finalised.

Australia introduced a law in 2021 that gave the government power to make internet companies negotiate content supply deals with media outlets. A review released by the Australian government in 2022 found that the legislation largely worked. REUTERS

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