Photographer: David Paul Morris / Bloomberg
Photographer: David Paul Morris / Bloomberg
Google has threatened to shut down its search engine in Australia if it is forced to pay local publishers for the news, a dramatic escalation of a months-long confrontation with the government.
The proposed law, intended to compensate publishers for the value their stories generate for the company, is “unfeasible,” Mel Silva, general manager of Australia and New Zealand, said in a parliamentary hearing on Friday. He specifically opposed the requirement that Google pay media companies to display snippets of articles in search results.
Google sees an agreement within the reach of the world’s first law to pay for news
The threat is Google’s most powerful, as the digital giant tries to curb a flow of regulatory action around the world. At least 94% of online searches in Australia go through Alphabet Unit Inc., according to the local competition regulator.
“We are not responding to threats,” Australian Prime Minister Scott Morrison said on Friday. “Australia sets our rules on the things you can do in Australia. This is done in our parliament. Our government does. And that’s how things work here in Australia. “
Facebook Inc., the only other company subject to the legislation, also opposes the law. The social media platform reiterated at Friday’s hearing that it is considering blocking Australians from sharing news on Facebook if the law is promoted.
Facebook sends a threatening warning to the Australian News
The legislation is designed to support a local media industry, including that of Rupert Murdoch News Corp., which has struggled to adapt to the digital economy. Google’s tougher stance drew reprimands from lawmakers in plain sight. Senator Andrew Bragg accused tech giant of trying to “blackmail” Australians and Australians politicians.
“If this version of the code became law, it would give us no choice but to stop making Google Search available in Australia,” Silva told a group of senators. He described the law as an “unsustainable financial and operational precedent.”
Google, based in Mountain View, California, arrived in deal with French media publishers after the country’s competition authority urged him to pay for the content. Last year it had stopped showing news results from European publishers on search results for French users, in order to comply with copyright laws.
– With the assistance of Jason Scott