WELLINGTON, Oct 4 (Reuters) - Google announced on Friday that it will cease linking to news articles from New Zealand and terminate agreements with local news organizations if the government proceeds with a law requiring tech companies to pay for content displayed on their platforms.
The New Zealand government aims to advance legislation initiated by the previous Labour Party-led administration, which mandates equitable revenue sharing between digital platform operators and news media entities. The proposed legislation is under review and may undergo modifications to align more closely with Australian laws.
Caroline Rainsford, Google New Zealand Country Director, stated in a blog post that the current version of the bill would compel Google to make substantial alterations 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 explained.
Google, a subsidiary of Alphabet Inc, expressed concerns that the bill contradicts the principle of an open internet, could adversely affect smaller publishers, and presents uncapped financial risks that create business uncertainty.
New Zealand’s Minister for Media and Communications, Paul Goldsmith, acknowledged the diverse opinions within the sector. “We are still in the consultation phase and will make announcements in due course,” he stated. “My officials and I have met with Google on several occasions to discuss their concerns and will continue to do so.”
While the minority coalition partner ACT opposes the legislation, it is anticipated that sufficient cross-party support will be garnered for its eventual passage.
In 2021, Australia enacted a law granting the government authority to compel internet companies to negotiate content supply agreements with media outlets. A review by the Australian government in 2022 indicated that the law has been largely effective.
Reporting by Lucy Craymer; editing by Lincoln Feast.