SYDNEY, Jan 22 (Reuters) – Google said on Friday it would turn off its search feature in Australia if the government proceeds with a media code that would force Facebook and Inc. to pay local media companies to share their content.
Australia is in the process of passing laws that will make big tech giants negotiate payments with local content publishers and broadcasters. If they do not reach an agreement, a government-appointed arbitrator will decide the price.
“The biased code arbitrage model presents an unmanageable operational and financial risk for Google,” Mel Silva, managing director of Australia and New Zealand, told a Senate committee.
“If this version of the code became law, it would give us no choice but to stop making Google Search available in Australia.”
Australia announced the legislation last month after an investigation found that Google, owned by Alphabet Inc, and social media giant Facebook had too much market power in the media industry, a situation it said meant a potential threat to democratic functioning.
This week, the U.S. government called on Australia to set aside proposed laws, which have broad political support, and suggested Australia should pursue a voluntary code.
Google’s threat to limit its services to Australia came just hours after the Internet giant reached a content payment deal with some French news publishers.
Google’s testimony “is part of a pattern of threatening behavior that terrifies anyone who values our democracy,” said Peter Lewis, director of the Institute of Responsible Technology at the Australian Institute.
Report by Renju Jose Edition by Byron Kaye and Gerry Doyle