In a move that highlights the strained relationship between Big Tech and legacy news organisations, Google has warned it may stop promoting New Zealand news content and cut its commercial agreements with legacy media newsrooms if the government proceeds with the Fair Digital News Bargaining Bill.
The bill would compel tech giants to pay news organisations for their content—a move that National initially opposed but is now being pushed forward by the new coalition.
In a statement today, Google’s New Zealand Country Director, Caroline Rainsford, expressed concerns over the bill, calling it a “link tax” and arguing that it is the wrong approach to ensure the sustainability of New Zealand’s ailing legacy news industry.
“This bill proposes a ‘link tax’ that would require Google to pay simply for linking to news articles,” said Rainsford. “While Google supports efforts to foster a sustainable future for New Zealand news, this bill is not the right approach.”
Google, which has been involved in commercial agreements with nearly 50 New Zealand publications through programs like Google News Showcase, warned that if the bill passes, it would discontinue these partnerships and halt linking to news content on its services, including Google Search and Google News. It’s feared this would drastically affect how New Zealanders access local news.
Critics of the bill, including ACT Leader David Seymour, have labelled it a misguided attempt to protect legacy media from market competition.
“The internet has made it easier than ever to report news, and certain outlets need to stop blaming the internet and start looking at their product,” Seymour said. He said the bill doesn’t truly represent a bargaining process but rather a political interference in media operations.
Google’s concerns echo the outcomes in other countries like Australia and Canada, where similar legislation has prompted tech platforms to withdraw from news promotion. Smaller, regional publishers could face the brunt of the fallout, losing the digital exposure they depend on to reach wider audiences.
Meanwhile, Media and Communications Minister Paul Goldsmith has downplayed the alarm, stating that the government is still in consultation and negotiations. The revenue potential from such legislation remains unclear, with estimates ranging between $6 million and $30 million depending on the outcome of talks with tech giants.
And here’s me; quietly watching one corrupt festering corporate conglomeration locked in battle with another, knowing I’ll never trust the news from EITHER of them.
Its not going to make people trust the sleazy mainstream media again. The only plus I can see is Google leaving NZ.
Google search ia nothing like it used to be anyway.
Use of quotation marks, +or – symbols do not seem to help define searches anymore.
Just rubbish search results returned. Usually whoever has paid the most I guess.
First time i’m rooting for Google. Mainstream media are leeches, irrelevant in today’s world.