In a significant move, Google has announced plans to sever traffic to New Zealand news sites if the government enacts a new law mandating tech platforms to negotiate revenue-sharing agreements with media outlets. This announcement, made by Google New Zealand's Country Director Caroline Rainsford on October 6, 2024, follows a surprise government proposal to advance the bill aimed at addressing the loss of advertising revenue from local news.
The New Zealand government, led by the center-right National party, had previously opposed the legislation, but the recent loss of over 200 newsroom jobs has prompted a reconsideration of the law. The proposed legislation seeks to prevent the outflow of advertising revenue generated from local news content.
Rainsford indicated that if the bill passes, Google would stop linking to news content on platforms like Google Search and Google News in New Zealand, effectively cutting off support for local news publishers. The News Publishers' Association criticized Google’s stance as corporate bullying, arguing that the government should have the authority to legislate for the benefit of democracy without external pressures.
This situation mirrors previous instances in Australia and Canada, where similar laws were introduced. In Australia, Google and Meta initially responded with news blackouts but later negotiated deals worth approximately 200 million Australian dollars annually to support local outlets. As Canada moves forward with similar legislation, both tech giants have threatened to withdraw support for Canadian media.
Colin Peacock, a media analyst, noted that Google is likely concerned about international perceptions of its actions regarding news legislation. Meanwhile, New Zealand’s Minister for Media and Communications, Paul Goldsmith, is still in discussions regarding the bill's final version, with plans to pass it by the end of the year.