Photographer: David Paul Morris / Bloomberg
Photographer: David Paul Morris / Bloomberg
Google threatened to disable its search engine in Australia if it is forced to pay local publishers for the news, a dramatic escalation from a months-long standoff with the government.
The proposed law, which aims to compensate publishers for the value their stories generate for the company, is “impractical,” said Mel Silva, managing director of Australia and New Zealand, at a parliamentary hearing on Friday. She specifically objected to the requirement that Google pay media companies to display excerpts from articles in search results.
Google sees business within reach of world pioneer law to pay for news
The threat is Google’s most potent, as the digital giant tries to stem a flow of regulatory actions around the world. At least 94% of online surveys in Australia go through the Alphabet Inc. unit, according to the local competition regulator.
“We do not respond to threats,” Australian Prime Minister Scott Morrison said on Friday. “Australia sets our rules for things you can do in Australia. This is done in our parliament. It is done by our government. And this is how things work here in Australia ”.
Facebook Inc., the only other company targeted by legislation, is also opposed to the law. The social media platform reiterated at Friday’s hearing that it is considering blocking Australians from sharing news on Facebook if the law passes.
Facebook sends the world a threat alert for Australian news
The legislation is designed to support a local media industry, including Rupert Murdoch News Corp., which has struggled to adapt to the digital economy. Google’s tougher stance drew criticisms from lawmakers at the hearing. Senator Andrew Bragg accused the tech giant of trying to “blackmail” Australians and legislators.
“If that version of the code became law, we would have no real choice but to stop making Google Search available in Australia,” Silva told a panel of senators. She described the law as an “unsustainable financial and operational precedent”.
Google, based in Mountain View, California, on Thursday achieved a negotiate with French media publishers after the country’s competition authority urged it to pay for the content. He stopped showing results of news from European publishers in search results to French users last year in order to comply with copyright laws.
– With the help of Jason Scott