Google says it will stop linking to New Zealand news if a law is passed forcing it to pay for content

WELLINGTON, New Zealand (AP) — Google said Friday it will stop linking to New Zealand news content and end its support for local media if the government passes a law forcing tech companies to pay for articles displayed on their platforms to pay.

The promise to cut off Google traffic to New Zealand news sites – which the search giant made in a blog post on Friday – reflects the strategies the company has deployed as Australia and Canada prepared to enact similar laws in recent years.

It followed a surprise announcement by the New Zealand government in July that lawmakers would introduce a bill that would force tech platforms to enter into agreements to share revenue from news content with the media companies that produce that content.

The government led by the center-right National party had opposed the law in 2023 when it was introduced by the previous government.

But the loss of more than 200 newsroom jobs earlier this year — in a national media industry that totaled 1,600 reporters in the 2018 census and has likely shrunk since then — prompted the current administration to consider forcing tech companies to hire publishers for the Pay to view content.

The aim of the law is to stem the flow of advertising revenue from New Zealand news products overseas.

Google New Zealand country director Caroline Rainsford wrote on Friday that the company would change its involvement in the country's media landscape if passed.

“Specifically, we would be forced to stop linking to news content in Google Search, Google News, or Discover interfaces in New Zealand and end our current commercial agreements and ecosystem support with New Zealand news publishers,” she wrote.

Google's licensing program in New Zealand has contributed “millions of dollars a year to nearly 50 local publications,” she added.

The News Publishers' Association, a New Zealand industry group, said in a written statement on Friday that Google's commitment amounted to a “threat” and “reflects the type of pressure the company has brought to bear on the government and news outlets,” Andrew said. Director of Public Affairs Holden said.

The government “should be able to legislate to strengthen democracy in this country without facing this kind of corporate bullying,” he said.

Australia was the first country to try to force technology companies – including Google and Meta – to the negotiating table with news outlets through a law passed in 2021. Initially, the tech giants imposed news blackouts for Australians on their platforms, but both eventually relented a bit, striking deals worth a reported $200 million (US$137 million a year) paid to Australian broadcasters for use of their content.

But Belinda Barnet, a media expert at Swinburne University in Melbourne, said Meta had refused to renew its contracts with Australian news media while Google renegotiated its original contracts.

As Canada prepared to pass similar digital news bargaining laws in 2023, Google and Meta again vowed to end their support for the country's media. Last November, however Google promised to contribute 100 million Canadian dollars ($74 million) – indexed for inflation – to provide annual financial support to news organizations across the country.

Colin Peacock, an analyst who hosts the Mediawatch show on RNZ, New Zealand's public radio station, said that by passing such a law, Google “doesn't want to make headlines around the world saying another country has pushed back.” “.

While Google highlighted its support of local outlets on Friday, Peacock said one of its grant recipients – the publisher of a small newspaper – told a parliamentary committee this year that the amount he received was “a pittance” and was not enough. to hire an individual graduate reporter.

Media and Communications Minister Paul Goldsmith told The Associated Press in a written statement on Friday that he was still discussing the next version of the bill.

“My officials and I have met with Google multiple times to discuss their concerns and we will continue to do so,” he said.

Goldsmith said in July he planned to pass the bill by the end of the year.

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Associated Press writer Rod McGuirk reported from Melbourne, Australia.