Google says it will remove the search feature in Australia if the media code becomes law

Alphabet Google said on Friday it would block its search engine in Australia if the government comes up with a new code that would force Facebook and it to pay media companies the right to use their content.

Google’s threat escalates the battle with publishers like News Corp who are being watched around the world. The search giant had warned that its 19 million Australian users would face degraded search and YouTube experiences if the new code were applied.

Australia is in the process of passing laws that will make tech giants negotiate payments with local publishers and broadcasters for content included in search results or news feeds. If they do not reach an agreement, a government-appointed arbitrator will decide the price.

“Along with the unmanageable financial and operational risk if this version of the Code became law, it would give us no choice but to stop making Google Search available in Australia,” said Mel Silva, CEO of Australia and New Zealand . a committee of the senate.

Silva made no mention of YouTube in the prepared comments.

Google’s comments sparked strong criticism from Australian Prime Minister Scott Morrison, who said the country sets its own rules for “things you can do in Australia”.

“People who want to work with this in Australia are very welcome. But we don’t respond to threats,” Morrison told reporters.

Google has said the code is overly broad and has said that without reviews, offering even a limited search tool would be too risky. The company does not disclose Australian sales, but search ads are its main contributor to worldwide revenue and profits.

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.

Australia announced the legislation last month after an investigation found that Google and social media giant Facebook had too much market power in the media industry, a situation it said posed a potential threat to a democracy. which worked well.

Google’s threat to limit its services in Australia came just hours after the Internet giant reached a content payment deal with some French news publishers as part of a three-year 1.3 billion boost of dollars to support 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.