The company’s main concern with the proposal is that it “would require payments only for links and snippets only for news results in the Survey,” according to Silva.
“The free service we offer to Australian users, and our business model, was built on the ability to link freely between sites,” she said.
Google and Facebook have been fighting with publishers for years over how they display their content, with media companies arguing that tech giants should pay them for this privilege. Critics of the two technology companies point out that, as they dominate the online advertising business, this puts news publishers in a difficult spot and leaves them struggling for leftovers.
The new legislation would allow certain media outlets to negotiate individually or collectively with Facebook and Google – and enter arbitration if the parties fail to reach an agreement within three months, according to the Australian Competition and Consumer Commission, which released legislation.
Australian Prime Minister Scott Morrison responded to Google on Friday.
Asked about Morrison’s comments, Google declined to comment.
A warning of ‘consequences’
The U.S. giant is now proposing three changes to the code, including how it would compensate news publishers.
The company also wants to change a requirement that would force Google to notify publishers of changes to its algorithm, saying it should do so only “to ensure that publishers are able to respond to changes that affect them”.
“There is a clear path to a fair and viable Code,” said Silva. “Withdrawing our services from Australia is the last thing Google or I want to happen – especially when there is another way forward.”
An aggressive battle
At the same Senate hearing on Friday, Simon Milner, Facebook’s vice president of public policy for Asia-Pacific, said the company could block news content in Australia, although he emphasized a commitment to “make the viable law “.
Milner told lawmakers that there was already a “deterrent effect of this law on investment in the Australian news industry”, citing a recent decision by Facebook to launch a news product in the UK instead of Australia.
Regulators say legislation is needed to level the playing field for news media in Australia, as newsrooms across the country have cut service, closed temporarily or permanently.
– Hanna Ziady contributed to this report.