Google warns to stop linking to New Zealand news if government passes compensation law
Date
10/6/2024 4:43:37 AM
(MENAFN) google announced on Friday that it will halt linking to New Zealand news content and withdraw its support for local media outlets if the government passes legislation that mandates tech companies to compensate news organizations for the articles displayed on their platforms. This statement, made in a blog post by Google, reflects a strategy the company has previously employed in response to similar laws in Australia and Canada.
The warning came shortly after New Zealand's government revealed its intention to advance a bill requiring tech platforms to negotiate revenue-sharing agreements with media outlets that produce news content. This bill is a shift in policy from the center-right National government, which had opposed such legislation in 2023 when it was initially proposed by the previous administration.
The reconsideration of this bill follows significant job losses in the New Zealand media sector, where more than 200 newsroom jobs were cut earlier this year. This loss has led to concerns about the sustainability of journalism in a country that had only 1,600 reporters at the time of the 2018 census, a number that has likely decreased since then. The government's goal with the new law is to stem the outflow of advertising revenue generated from New Zealand news products, which has been a concern for local media organizations.
In her statement, Google New Zealand's Country Director Caroline Rainsford emphasized that if the law is enacted, the company would have no choice but to discontinue linking to news content across its platforms, including Google Search, Google News, and Discover. She noted that Google’s existing commercial agreements and support for New Zealand news publishers would also be terminated. Rainsford highlighted that Google's licensing program has contributed millions of dollars annually to nearly 50 local publications, underscoring the potential impact of the proposed legislation on the local media landscape.
In response, the News Publishers’ Association of New Zealand criticized Google’s pledge as "threats" and indicative of the pressure the tech giant has exerted on both the government and news outlets. Public Affairs Director Andrew Holden asserted that the government should have the authority to enact laws that bolster democracy without succumbing to corporate intimidation. This statement reflects a growing tension between tech companies and media organizations as they navigate the complexities of digital advertising revenue and content distribution in the modern landscape.
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