Google has announced its intention to cease linking to New Zealand news content if a proposed law mandating payment for such content is enacted. The tech giant stated in a blog post on Friday that it would also retract its support for local media organisations if the government proceeds with implementing the law.
This move by Google mirrors similar actions it took in response to comparable laws in Australia and Canada in recent years. The New Zealand government surprised many in July by revealing plans to pass a bill compelling tech companies to reach agreements to share revenue generated from news content with the media outlets responsible for creating it. This decision marked a shift from the government’s earlier opposition to the law back in 2023 when it was introduced by the previous administration.
The catalyst for reconsidering the imposition of payment on tech companies was the significant loss of over 200 jobs in newsrooms this year. This loss was particularly notable in a national media industry that had around 1,600 reporters during the 2018 census, a number that has likely decreased since then.
The primary objective of the legislation is to halt the outflow of advertising revenue from New Zealand news products to overseas entities. Caroline Rainsford, Google New Zealand’s Country Director, highlighted that if the law is passed, Google would be compelled to discontinue linking to news content on various platforms in New Zealand and terminate its existing commercial agreements and support for local news publishers.
In response to Google’s stance, the News Publishers’ Association in New Zealand described the move as “threats”, indicating the pressure being exerted on the government and news outlets. The association emphasised the need for the government to be able to enact laws that enhance democracy without facing corporate intimidation.
Google’s actions in Australia and Canada serve as precedents for its current position in New Zealand. While initially resisting the laws in these countries, Google eventually struck agreements to provide financial support to news businesses. Despite this, reports indicate that Meta has chosen not to renew contracts with Australian news media, while Google is in the process of renegotiating its initial deals.
In New Zealand, Minister for Media and Communications Paul Goldsmith conveyed that discussions with Google are ongoing regarding the bill. He reiterated his commitment to passing the law by the end of the year. The government’s objective is to establish a fair system that protects the interests of both news publishers and tech companies.
The evolving landscape of digital news and content distribution continues to pose challenges to regulators and industry players worldwide. Google’s firm stance in New Zealand underscores the complex dynamics at play as governments seek to navigate the delicate balance between supporting journalism and regulating tech giants in the digital age.