Wellington, New Zealand [October 5, 2024]: Google announced on Friday that it would cease linking to New Zealand news content if the government passes a law requiring tech giants to pay local media outlets for displaying their articles. This decision mirrors strategies Google used in Australia and Canada when they enacted similar laws. The tech company made its position clear in a blog post, signaling potential disruption in the way New Zealanders access news through Google’s platforms, including Google Search, Google News, and Discover.
The announcement follows New Zealand’s government decision in July to push forward a bill that mandates tech companies to negotiate payment agreements with local news outlets for the revenue generated from their content. This represents a stark change in the government’s position, as the centre-right National Party had previously opposed the legislation when it was introduced by the former administration in 2023.
However, the situation within New Zealand’s media industry has changed significantly in recent years. The country’s journalism workforce has been in decline, with over 200 newsroom jobs lost earlier this year. The total number of reporters has shrunk from 1,600 recorded in the 2018 census, creating a sense of urgency for more financial support within the sector. The proposed law aims to address this issue by keeping advertising revenue generated from New Zealand news within the country, rather than flowing offshore to large tech corporations.
Google’s response to the legislation
Google New Zealand’s Country Director, Caroline Rainsford, made the company’s stance clear in a blog post, warning that the legislation would force Google to change its relationship with the country’s media landscape. “If the bill passes, we’d be forced to stop linking to news content on Google Search, Google News, or Discover surfaces in New Zealand,” she wrote. Rainsford added that Google would also discontinue its current commercial agreements and support for local news publishers.
Google’s licensing program in New Zealand has reportedly contributed millions of dollars annually to around 50 local news publications. The potential withdrawal of this support has raised alarms among media organizations, who fear the financial repercussions.
Pushback from the news publishers’ association
The News Publishers’ Association, a key industry body in New Zealand, condemned Google’s threat, calling it an example of corporate pressure tactics. Public Affairs Director Andrew Holden described Google’s position as “corporate bullying,” arguing that the government should be able to enact laws that strengthen democracy without being coerced by powerful tech companies.
Holden emphasized the importance of the legislation for New Zealand’s struggling news industry, saying, “The government must have the ability to support public interest journalism and media outlets that play a crucial role in our democratic system.”
Global context: Google’s similar moves in Australia and Canada
Google’s reaction in New Zealand is not without precedent. In 2021, Australia became the first country to pass a law that forced tech companies like Google and Meta (formerly Facebook) to negotiate payments with news organizations for the use of their content. Initially, both tech giants responded by imposing news blackouts in Australia. However, after widespread criticism, they eventually agreed to deals with Australian outlets, reportedly worth 200 million Australian dollars ($137 million) annually.
Despite these deals, not all has gone smoothly. In Australia, Meta has declined to renew its contracts with several media organizations, while Google is reportedly renegotiating its agreements. Similarly, in Canada, when the government introduced its own digital news bargaining law in 2023, Google and Meta again vowed to cut ties with local media. However, Google eventually committed to contributing 100 million Canadian dollars ($74 million) annually to support news organizations.
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Ongoing discussions and future uncertainty
The New Zealand government is continuing to consult on the bill. Minister for Media and Communications Paul Goldsmith stated that he and his officials have had multiple discussions with Google to address their concerns. “We will continue to engage with them to find a balanced solution,” Goldsmith said in a statement to the Associated Press on Friday.
Local media analyst Colin Peacock, who hosts the Mediawatch program on RNZ, New Zealand’s public broadcaster, noted that Google’s actions are part of a broader pattern of resistance to paying for news content. “Google doesn’t want headlines around the world that say another country has forced them into these deals,” he said.
Peacock also pointed out that the funding Google has provided to smaller outlets has not been sufficient. One small newspaper publisher receiving Google’s support testified earlier this year that the financial aid amounted to a “pittance” and wasn’t enough to hire a single new reporter.
As consultations continue, the future of news access and support for local journalism in New Zealand remains uncertain. If the law is enacted, it could significantly alter the digital media landscape in the country, with potential consequences for both tech companies and local news organizations.
