Google Threatens to Cut Ties with New Zealand News Publishers Over Proposed Media Law

In July, the New Zealand government confirmed it would advance legislation initiated by the previous Labour Party-led administration to ensure fair revenue sharing between digital platforms and news media. The proposed law, which is still under review, may undergo changes to align more closely with Australia’s similar legislation.

Caroline Rainsford, Google New Zealand’s Country Director, stated in a blog post that if the bill becomes law in its current form, Google would have to make significant changes to its services and investments in the country.

“We’d be forced to stop linking to news content on Google Search, Google News, or Discover in New Zealand, and discontinue our current commercial agreements and support for New Zealand news publishers,” Rainsford explained.

Google, owned by Alphabet Inc., expressed concerns that the bill contradicts the principle of an open internet, could harm smaller publishers, and presents uncapped financial risks that create business uncertainty.

New Zealand’s Minister for Media and Communications, Paul Goldsmith, said the government is considering the various viewpoints within the sector. “We are still in the consultation phase and will make announcements in due course,” Goldsmith said, adding that he has met with Google to discuss their concerns.

While the minority coalition partner ACT opposes the legislation, it is expected to receive enough cross-party support to pass once finalized.

Australia introduced a similar law in 2021, requiring internet companies to negotiate content deals with media outlets. A 2022 review by the Australian government found the law largely effective.

Source: Reuters