Google Threatens to Remove News Links in New Zealand over Proposed Legislation

Google has issued a stark warning to the New Zealand government regarding its plans to enact new legislation that would compel digital platform operators like Google to pay for news content they use. On Friday, Google announced that if the proposed bill is passed, it would lead to the tech titan ceasing to link to New Zealand news articles on its services, including Google Search and Google News.

The contentious bill is a move by the New Zealand government to ensure that revenue generated from news content is fairly shared between the news media entities producing it and the digital platforms that distribute it. While the legislation is still under review with potential amendments on the horizon, Google's New Zealand country director, Caroline Rainsford, has emphasized the impact it would have on the company’s operations and its collaborations with local news organizations.

Rainsford stated in a blog post that, should the law be enacted in its present form, Google would have no choice but to halt its linking to news content in New Zealand and terminate its existing commercial agreements. She conveyed Google's concerns that the proposed legislation contradicts the principles of an open internet, potentially harms smaller publishers, and introduces significant business risks due to unbounded financial liabilities.

New Zealand’s minister for media and communications, Paul Goldsmith, has acknowledged Google's concern while confirming that the government is still in a consultation phase over the bill. Goldsmith pointed out that discussions with Google would continue as the government considers varying perspectives within the sector.

In light of the situation, it is worth noting that the Australian government passed similar legislation in 2021, known as the News Media Bargaining Code, which compelled tech companies to strike deals with media publishers for use of their content. A 2022 review found the Australian law to be largely effective.

Despite resistance from New Zealand's ACT party, the proposed payment legislation is still expected to gain enough bipartisan support to pass. This underscores a broader global trend of countries exploring regulatory measures to ensure that news media businesses receive fair compensation in the digital age.

How the New Zealand government will respond to Google's latest declaration remains to be closely observed, as the debate over the balance between fair remuneration for content producers and maintaining a free and open internet environment continues.