Jessica Heygate
Updated on: October 16, 2024 4:08 pm GMT
In a bold move, Google is warning that it may stop linking to news articles in New Zealand if a proposed new law requiring tech giants to pay for content becomes reality. This could drastically change how New Zealanders access news online.
The Proposed Legislation
The New Zealand government is pushing legislation that would mandate fair revenue sharing between digital platforms and local news outlets. In July, officials announced plans to move forward with a law initially proposed by the previous Labour Party-led administration. The goal of this legislation is to ensure that news media receive appropriate compensation for their content.
Key points about the proposed law include:
- Ensures fair payment for news content shared on digital platforms.
- Aiming to reduce the financial struggles faced by local media.
- Likely to undergo revisions to align more closely with Australian legislation.
Google’s Response
Caroline Rainsford, the Google New Zealand country director, expressed the company’s concerns in a recent blog post. She highlighted that if the law passed in its current form, Google would have no choice but to make significant changes to its services in New Zealand.
“We’d be forced to stop linking to news content on Google Search, Google News, or Discover surfaces in New Zealand,” Rainsford stated. She further explained that this law could result in Google ending its existing agreements with local news publishers, which would disrupt their current business relationships.
Concerns from Google
Google has raised several issues related to the proposed law:
- The legislation is seen as contrary to the principle of an open internet.
- There are fears it could negatively impact small publishers.
- The lack of caps on payments poses business uncertainty.
The Government’s Stance
Paul Goldsmith, New Zealand’s Minister for Media and Communications, acknowledged the diverse opinions around the bill. He mentioned that the government is still in the consultation phase and plans to announce decisions based on feedback from various stakeholders.
“My officials and I have met with Google multiple times to discuss its concerns, and will continue to do so,” Goldsmith noted. This illustrates the government’s commitment to addressing issues raised by tech firms as well as media organizations.
Comparison with Australia
New Zealand’s proposed law has drawn comparisons to Australia’s similar legislation passed in 2021. That law aimed to make tech companies negotiate payment deals with local media outlets and has largely been deemed successful based on a review released in 2022.
- Australia’s model encourages negotiations between platforms and media.
- The legislation has reportedly supported the survival of various news organizations in Australia.
With New Zealand’s law, there may be lessons to learn from Australia’s implementation.
Potential Impact on New Zealand’s Media Landscape
The implications of Google’s potential withdrawal from linking to news content could be significant. Many New Zealanders rely on search engines and news aggregators to stay informed. If Google proceeds with halting news links, it may lead to:
- A decrease in the visibility of local news outlets.
- Limited access to diverse viewpoints and coverage of national issues.
- Struggles for publishers who depend on traffic from Google’s platform.
The fate of local journalism in New Zealand may hinge on the decisions made by both the government and Google in the coming months.
Looking Ahead
As the government continues to gather feedback and refine the proposed legislation, the tech giant’s potential actions remain a critical point of discussion. Google has made it clear that they will only engage with legislation they find fair and reasonable.
With the potential for changes echoing from Australia’s recent experiences, New Zealand is at a crossroads regarding how it will handle the relationship between digital platforms and news publishers.
the proposed legislation could reshape the media landscape in New Zealand profoundly. As both government officials and tech companies navigate this complex issue, the importance of fair compensation for online news remains a high priority. How this debate unfolds will determine the future of news consumption in New Zealand
