On Friday, Google announced that it would discontinue linking to New Zealand news articles and terminate its agreements with local news organizations if the government proceeds with proposed legislation aimed at ensuring fair compensation for content utilized in digital feeds.
In July, the New Zealand government confirmed its intention to advance legislation initiated by the prior Labour Party-led administration, which aims to establish equitable revenue sharing between digital platform operators and news media entities. This proposed legislation is currently under review and may be modified to align more closely with existing laws in Australia.
Caroline Rainsford, Google’s Country Director for New Zealand, stated in a blog post that the company would have to implement significant changes to its products and investment strategies should the bill be enacted in its present form.
“We would be obligated to cease linking to news content on Google Search, Google News, or Discover in New Zealand and to end our current commercial agreements and support for New Zealand news publishers,” Rainsford explained.
Google, a subsidiary of Alphabet, expressed concerns that the proposed legislation contradicts the principles of an open Internet, could be detrimental to smaller publishers, and poses significant financial risks due to its uncapped exposure.
New Zealand’s Minister for Media and Communications, Paul Goldsmith, noted that he is weighing perspectives from various stakeholders in the sector.
“We are still in the consultation phase and will make announcements in due course,” Goldsmith stated. “My officials and I have engaged in multiple discussions with Google regarding their concerns, and we will continue these conversations.”
Although the current coalition partner ACT opposes the legislation, it is anticipated to garner sufficient cross-party support to be approved once finalized.
In 2021, Australia enacted a law empowering the government to require internet companies to negotiate content supply agreements with media organizations. A review conducted by the Australian government in 2022 indicated that the law functioned effectively.
© Thomson Reuters 2024
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