SYDNEY, Jan. 22 (Reuters) – Google said on Friday it would disable its search function in Australia if the government proceeds with a media code that compels it and Facebook Inc to pay local media companies to share its content. .
Australia is about to pass laws that would make Big Tech giants negotiate payments with local publishers and broadcasters for content. If they fail to reach an agreement, a government-appointed arbitrator will decide the price.
“The code arbitration model with polarization criteria poses uncontrollable financial and operational risks for Google,” Mel Silva, managing director of Australia and New Zealand, told a Senate committee.
“If this version of the code were to become law, we would have no choice but to stop making Google Search available in Australia.”
Australia announced the legislation last month after an investigation found that Alphabet Inc.-owned Google and social media giant Facebook held a lot of market power in the media industry, a situation she said posed a potential threat. for the proper functioning of democracy.
The United States government this week asked Australia to reject the proposed laws, which have broad political support, and suggested that Australia should seek a voluntary code.
Google’s threat to limit its services in Australia came just hours after the internet giant struck a content payment deal with some French news publishers.
Google’s testimony “is part of a threatening pattern of behavior that is frightening to anyone who values our democracy,” said Peter Lewis, director of the Australia Institute’s Center for Responsible Technology.
Reporting by Renju Jose Editing by Byron Kaye and Gerry Doyle