Google vows to halt searches in Australia if pressed to pay for news

Photo: EPA Scott Morrison

The hi-tech giant Google said it intended to block its search engine in Australia if the country’s government continues accepting new amendments to legislation that may force it, together with Facebook, to pay to media for the right to use its contents, Reuters reported.

Google’s vow to retaliate is a part of key media battle which is closely watched by a number of organizations in a number of countries.

Google’s warning may affect some 19 million users who may see their searches crippled and their Youtube experience degraded. Australia is on the move to approve laws that would make tech giants negotiate payments with local publishers and broadcasters for content included in search results or news feeds. If they cannot strike a deal, a government-appointed arbitrator will decide the price.

“Coupled with the unmanageable financial and operational risk if this version of the Code were to become law, it would give us no real choice but to stop making Google Search available in Australia,” Mel Silva, managing director for Australia and New Zealand, told a senate committee.

Silva made no mention of YouTube in prepared remarks, as the video service is expected to be exempted under revisions to the code last month. Google’s comments drew a sharp rebuke from Australian Prime Minister Scott Morrison who said the country makes its rules for “things you can do in Australia.” “People who want to work with that in Australia, you’re very welcome. But we don’t respond to threats,” Morrison told reporters.

At the inquiry, Australian Competition and Consumer Commission chair Rod Sims, who has overseen the new rules, said he could not predict what the tech giants would do but said “there’s always brinkmanship in serious negotiations”.

“They talk of commercial deals where they’re in full control of the deal,” he said. “In my view that’s not a commercial deal.” Google has called the code overly broad and said that without revisions, offering even a limited search tool would be too risky. The company does not disclose sales from Australia, but search ads are its biggest contributor to revenue and profit globally. US asked Australia to scrap the proposed laws, which have broad political support, and suggested Australia should pursue a voluntary code instead.

Australia announced the legislation last month after an investigation found Google and social media giant Facebook held too much market power in the media industry, a situation it said posed a potential threat to a well-functioning democracy.

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