Google this: Tech giant threatens to remove search engine from Australia over media code


Google has threatened to pack up its search engine if the code doesn't budge. Photo: Getty
The phrase âGoogle itâ has become ingrained in our society, but the tech giant could strip Australians of the pleasure amid souring negotiations over news content usage.
Google has threatened to pull its search engine over the federal governmentâs media code that would force it to pay for news content.
Google said the governmentâs proposal is so financially risky that it will have no choice but to leave Australia if it becomes law.
Tweet from @JoshButler
The companyâs managing director Mel Silva played Googleâs trump card on Friday at a Senate inquiry into the bill underpinning the proposed media code.
Ms Silva said it is unworkable and provides an untenable risk to the company as they are unable to even calculate the financial implications.
She said leaving the Australian market is their only choice, unless the code is tweaked.
âAny rational business needs to assess the impacts of any legislative change on our business, our product and our operations,â Ms Silva said.
âIt is the only rational choice if this law were to pass for us.
âWe have a workable solution. Weâre not opposed to a code, weâre not opposed to paying publishers for value but the details matter.â
She said Google Australiaâs gross revenue last financial year was $4.8 billion, with the majority â $4.3 billion â from advertising.
Thatâs the crux of the issue, with the code aimed at levelling bargaining power between tech giants and news companies.
Tech giants face $10 million fines if they do not follow the rules of the proposed code, designed to ensure they pay for news content.
Tweet from @JamieTravers
Treasurer Josh Frydenberg introduced the underpinning bill to Parliament in December, praising the âworld-leadingâ code.
One of Googleâs main concerns is that it would have to pay all registered news businesses for having results through the platformâs search engine.
The company does not want this and is instead offering to have its ânews showcaseâ feature included, which allows users to read some stories that are otherwise behind paywalls.
Google News Showcase is so far only available in Brazil and Germany, though licensing agreements have very recently been signed with some publications in France.
The Australia Instituteâs Centre for Responsible Technology Director Peter Lewis said Googleâs stance was a âbullyingâ tactic.
âGoogleâs testimony today is part of a pattern of threatening behaviour that is chilling for anyone who values our democracy,â Mr Lewis said.
Mr Lewis urged the government to âstand firmâ and said âthe eyes of the world are watching.â
Tweet from @googledownunder
Google says it has closed seven deals in Australia â including with Australian Community Media â for the ânews showcaseâ feature, which has been put on pause because of the proposed media code.
The government says it would prefer Facebook and Google to negotiate commercial deals with news media companies.
But if such talks fail the parties would be forced into talks under the âbargaining codeâ to decide how much the digital platforms should pay.
The mandatory code aims to combat the bargaining power imbalance between news businesses and digital platforms, brought on by advertisers flocking to the latter.
Facebook is also unhappy with the plan, arguing in its submission to the inquiry that the proposal has already deterred its planned investments in Australian news.
Representatives from News Corporation, Australian Associated Press, Nine, Guardian Australia, the ABC and SBS will also appear at Fridayâs hearing.
Representatives from Twitter will not be appearing on Friday, but in its submission the company has expressed concern the code wonât protect consumer welfare and choice and instead entrench dominant players.
-with AAP
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