Due to the new law from the Australian government, Google has said that it will shut down the search engine for Australian users if it has to pay for news. According to this new code the Australian government is trying to enforce, big tech companies like Google and Facebook have to pay local media companies for the right to use their content (Reuters). Google has mentioned clearly that if the Australian government enforces this new code, 19 million Australian users will have to face degraded search quality and YouTube experience.
Enforcement of the new code
The Australian government is preparing to pass a law that will make the big tech companies like Facebook and Google negotiate with the local publishers. This means that Google will now have to bargain a payment for these local channels and broadcasters whose contents are displayed in the Google search results. The government has further decided that if the companies among themselves cannot strike a deal then an arbitrator from the Australian government itself will fix a price.
Google is not even considering playing by the rules this time and hence completely declined to negotiate any price with the local publishers. The company has made a public announcement clearly sending the message that if the law is enforced Google search in Australia will degrade. Today, Mel Silva, Managing Director of Google Australia and New Zealand said at a public hearing that if this new code is enforced as law, Google will have no choice but to make Google search engine unavailable in Australia.
Further, Silva spoke about the impact of the new proposed law, that is, the News Media Bargaining code on Australian small businesses, publishers, and users as well. She said that the most concerning part of this new code is to pay for links and snippets in the search which will have a negative impact on the business as well as the digital economy. Silva also mentioned that the company has already reached News Showcase agreements with 7 publishers in Australia. So, with a few slights amendments in this new code, none has to sacrifice or adjust here a great deal to use Google.
How did Australia respond to Google’s reaction?
Since Google mentioned clearly that if the new law is enforced, Google will have no choice but to block the search engine for Australian users, Scott Morrison, Prime Minister of Australia has made few sharp comments. In response to Google’s comment, Morrison said that in Australia they have rules for “things you can do in Australia.” He further mentioned that those who will abide by these laws are most welcome to work in Australia but the country will not respond to any form of threats.
Apart from Morrison’s comment in response to what Google has said, many critical views have surfaced against these tech giants. Rod Sims, Australian Competition and Consumer Commission chair has said that these companies tend to strike a deal when they are in full power or have full control. And according to him “that’s not a commercial deal.”
Effect on Google
Google says that the search ads contribute to Google’s annual revenue and profit largely at a global level. So, if the company even offers a limited search tool for Australian users without any revision of this new code, it will be risky for the company. Google has called this new law very overly broad and hence it wants revision before the company is in a position to negotiate. The United States government has also asked the Australian government to scrap this new law and bring a more voluntary code instead. Australia proposed this new legislation last month after an investigation on the media market.
The government realized that companies like Google and Facebook have too much power in the media industry which might turn into a big threat in a democratic country. It is also noted that the statement from Google to limit its search engine for the Australian users came only hours after it struck a deal with some French news publisher. This content-payment deal is a three-year, $1.3 billion agreement to support publishers. (Reuters)
Annasha Dey is an NIT student, who apart from studying engineering is also a content writer. She has a great interest in photography, writing, reading novels, and travelling as well. She is a foodie who loves socializing and hanging out with her friends. She is also a trained Kathak dancer and a big fashion enthusiast. Dey also loves watching TV series, which includes F.R.I.E.N.D.S. and Big Bang Theory. To be a better writer she prefers to read more