Key Points
- Google may stop linking to New Zealand news if a proposed law requiring tech companies to pay for news content is enacted.
- The legislation aims to ensure fair revenue-sharing between tech platforms and local news media.
- Google expresses concerns over business uncertainty and potential harm to small publishers.
- The bill is under review, and ongoing consultations between the government and stakeholders are taking place.
Google has announced it will stop linking to New Zealand news articles and terminate agreements with local news organizations if the government proceeds with a law requiring tech giants to pay for content that appears on their platforms. The proposed legislation, initiated by New Zealand’s Labour Party-led government and confirmed for progress in July, seeks to ensure fair revenue-sharing between digital platforms like Google and local news media.
The legislation is still under review and may change to align more closely with Australia’s similar law, which was introduced in 2021. Australian law mandates negotiations between tech companies and media outlets regarding content supply and compensation. A 2022 review by the Australian government found the system largely effective.
In a blog post, Caroline Rainsford, Google New Zealand’s Country Director, warned that the bill’s current version would force Google to make significant adjustments. These changes include stopping linking news articles on Google Search, Google News, and Google Discover in New Zealand. Additionally, the company would halt its commercial agreements and other ecosystem support with New Zealand news publishers.
Rainsford expressed concerns that the legislation contradicts the principles of an open internet, which could negatively affect small publishers. She also pointed out the law’s uncapped financial exposure could create significant business uncertainty for tech companies like Google.
New Zealand’s Minister for Media and Communications, Paul Goldsmith, responded that the government is still in consultation. Goldsmith acknowledged Google’s concerns, stating that the government has held multiple discussions with the tech giant and plans to continue reviewing the feedback from various stakeholders. He confirmed that changes to the bill are possible before the legislation is finalized. Despite the opposition from a minority party, ACT, the bill is expected to receive enough cross-party support to pass.
Australia’s law, which serves as a model for New Zealand’s proposed regulation, has reportedly been successful in helping news publishers secure deals with tech giants. However, Google remains apprehensive about the impact of a similar law in New Zealand, claiming it could disrupt its operations and harm local journalism.
