Wellington: Google announced on Friday that it would cease linking to New Zealand news articles and terminate its agreements with local news organizations if the country’s government proceeds with a proposed law requiring tech giants to pay a fair price for news content appearing on their platforms.
The New Zealand government confirmed in July its intention to advance legislation initiated by the previous Labour Party-led administration, aimed at ensuring equitable revenue sharing between digital platform operators and news media entities. The proposed law is currently under review and is expected to undergo revisions, particularly to align it more closely with Australian legislation.
Caroline Rainsford, Google New Zealand’s Country Director, stated in a blog post that if the bill is enacted in its current form, Google would be compelled to implement substantial 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,” Rainsford noted.
Google, a subsidiary of Alphabet Inc., expresses concern that the proposed legislation contradicts the principle of an open internet, poses risks to small publishers, and creates business uncertainty due to uncapped financial exposure.
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New Zealand’s Minister for Media and Communications, Paul Goldsmith, mentioned that he is weighing the various perspectives within 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.”
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Although the minority coalition partner ACT does not support the legislation, there is potential for sufficient cross-party backing for it to pass once finalized.
In 2021, Australia enacted a law granting the government the authority to compel internet companies to negotiate content supply agreements with media outlets. A review released by the Australian government in 2022 indicated that the law had largely been effective.
