Google has threatened to withdraw its search engine from Australia in response to proposed legislation that would require the tech giant to pay news publishers for their content. The law, a world-first, aims to make Google, Facebook, and other tech companies share royalties with media outlets.
Google Australia managing director Mel Silva told a Senate hearing on Friday that the laws were 'unworkable' and would force the company to stop offering Google Search in Australia. Australian Prime Minister Scott Morrison responded firmly, stating that lawmakers would not yield to 'threats' and that Australia makes its own rules.
The proposed news code would tie Google and Facebook to mediated negotiations with publishers over the value of news content if no agreement is reached. The government argues that tech platforms gain customers from news content and should pay a fair amount, especially to support the embattled news industry vital to democracy.
Google's threat is its most severe yet, though news accounts for only 12.5% of Google searches in Australia. If implemented, the law would initially apply only to Facebook and Google. Alternatives like Microsoft's Bing, DuckDuckGo, and Yahoo! would remain available.
Google dominates the search engine market with nearly 90% share in Australia, and its revenues have grown markedly, reaching over $160bn globally in 2019. The company fears the precedent this law could set for other countries, as similar pressures mount in France and elsewhere.
Ms Silva argued that paying for links and search results would undermine the free flow of information online. However, lawmakers accused Google of 'blackmail' and bullying, with the government committed to progressing the legislation through parliament this year.
