Google has stated it will cease linking to New Zealand news content and promotion of local outlets if the government implements legislation to make big tech platforms pay for the content displayed on their apps.
It is a familiar theme, following the examples in recent years in Australia and Canada, but it remains to be seen if the outcome will be different in NZ.
In July, the government made a surprise announcement to continue the work of the previous administration to deliver a bill to make the tech companies pay for the news they show, effectively sharing revenue driven from content produced by other companies.
The intrigue on the government call is because it represents a change of tack. Last year, the center-right National Party opposed the draft, but now it is in power, it has decided to proceed.
The government is said to be wary of the current state of play, with more than 200 newsroom jobs slashed earlier this year. That appears to have prompted a rethink of the relationship with the likes of Google and Meta.
Google’s chief officer in the Oceania country warned the tech multinational should not be pushed into a corner, as it would lead to negative consequences for the media landscape.
“Specifically, 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,” stated Caroline Rainsford.
She added Google’s local licensing program contributed “millions of dollars per year to almost 50 local publications.”
Google derided for ‘corporate bullying’
In response, New Zealand’s News Publishers’ Association branded Google’s stated position as a threat and a continuation of the pressure it has been maintaining on the rest of the media ecosystem.
The NPA’s Public Affairs Director, Andrew Holden said the government “should be able to make laws to strengthen democracy in this country without being subjected to this kind of corporate bullying.”
When Australia turned the screw against big tech over paying for content, similar claims were made about pulling out and ending links to local coverage, but the outcome was different.
The result was a compromise of sorts and a deal was agreed worth a reported A$200 million ($137m) per year to Australian media outlets for their content to be used.
Image credit: Via Ideogram
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