Google to stop links to New zealand News if law passes

Google announced on Friday, that it would stop linking to New Zealand news articles and terminate its agreements with local news organizations if the government proceeds with a law requiring tech giants to pay a fair price for content displayed on their platforms.

In July, the New Zealand government confirmed it would move forward with legislation initiated by the previous Labour Party-led administration, aimed at ensuring equitable revenue sharing between digital platform operators and news media entities. This proposed legislation is currently under review and may be adjusted to align more closely with Australian laws.

Caroline Rainsford, Google New Zealand’s Country Director, stated in a blog post that if the bill, in its present form, is enacted, Google would have to implement significant changes to its products and investments.

 “We would be compelled to stop linking to news content on Google Search, Google News, or Discover in New Zealand and discontinue our existing commercial agreements and ecosystem support with New Zealand news publishers,” Rainsford explained.

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Google, a subsidiary of Alphabet Inc., has expressed concerns that the bill undermines the principle of an open internet, could negatively impact smaller publishers, and creates uncertainty due to the lack of a cap on financial exposure.

New Zealand’s Minister for Media and Communications, Paul Goldsmith, stated that he is considering the diverse opinions within the sector.

 “We are still in the consultation phase and will make announcements in due course, My officials and I have met with Google several times to discuss their concerns and will continue these discussions, “he said.

While the minority government coalition partner, ACT, does not support the legislation, it is expected to garner enough cross-party backing to pass once finalized.

Australia enacted a law in 2021 granting the government the authority to require internet companies to negotiate content supply agreements with media outlets. A review released by the Australian government in 2022 indicated that the law was largely effective.