If Australia enacts the proposed new media law, Google will shut down the search engine for all residents. The American internet giant is threatening this because of the part that stipulates that Google and other tech companies must pay newspapers, news websites, and other news media for content.
The bill is intended to help news publishers who are struggling financially with the online revenue model. Google says it goes against "the principle of free linking between websites."
Facebook has also previously expressed strong criticism of the proposal. The company said that upon introduction, Australians will no longer be able to access news content on the platform.
'We do not respond to threats'
Prime Minister Scott Morrison says he is not impressed by Google's ultimatum. "Let it be clear: Australia makes the rules about what you can do here. That is done in parliament and we do not respond to threats."
It is striking that the US tech company is putting such pressure on the Australian government. Google is also fighting against similar legislation in other countries, but news site Bloomberg notes that there was no threat to shut down the search engine completely.
Appointments in France
French news publishers reached an agreement with Google yesterday. The search engine will be the first country in Europe to pay a fee, therefore, displaying news articles in searches, writes news site France24.
Previously, Google had refused and blocked search results for European news media in France. But a high French court forced the tech company to continue negotiations with the publishers on the basis of European legislation.
In Australia too, Google is therefore under pressure to accommodate news publishers. “The Australian government was the first in the world to legislate that Google has a financial obligation to the media here. It is a pioneering role that is being embraced.
Billion miles
About 94 percent of all searches in Australia are done via Google, the Australian regulator reports. An estimated 19 of the more than 25 million Australians use the search engine every day. According to the company, it had a turnover of 3.1 billion euros in Australia last year.
About 17 million Australians log in to Facebook every month. The company claims to have achieved a turnover of 427 million euros in advertisements there in 2019.
News sites, newspapers, and TV stations feel they are entitled to compensation because their articles and videos generate revenue for the two tech giants. But they counter that the media are already benefiting from the extra visitors to their site.
'Scaremongering'
With the threat, Google is behaving like a corporate bully, a media professor from the University of Melbourne told Bloomberg. "It's all about control and power. They let other regulators know they can expect a fight if they pass these kinds of laws."
The vote on the media law is expected within a few months. If it gets through, Google and Facebook will have to make a deal with publishers. If the negotiating parties cannot reach an agreement together, mandatory mediation will follow.