Google has announced its intention to cease linking to New Zealand news content and withdraw its support from local media outlets if the government enacts legislation requiring tech companies to pay for displaying news articles. This statement, made in a blog post on Friday by the tech giant, mirrors similar actions taken in Australia and Canada when those countries considered comparable laws. The proposed legislation in New Zealand follows a government decision in July to advance a bill compelling tech platforms to share revenue generated from news content with the media organizations that produce it. Previously, the center-right National Party, now in power, opposed the bill in 2023 when it was introduced by the former administration.
The New Zealand media industry has been struggling, with the loss of over 200 newsroom jobs earlier this year. At the 2018 census, there were approximately 1,600 reporters in the country, a number that has likely declined since. These challenges have prompted the current government to reconsider its stance and explore forcing tech companies to compensate news publishers for the content displayed on their platforms.
The primary objective of the proposed law is to prevent the outflow of advertising revenue generated from New Zealand’s news content. In response, Google New Zealand Country Director Caroline Rainsford stated that if the law is passed, Google would be forced to alter its involvement in the country’s media landscape. She noted that this would include halting links to news content on Google Search, Google News, and Discover, as well as discontinuing current commercial agreements with local publishers.
Rainsford highlighted that Google’s licensing program in New Zealand had contributed millions of dollars annually to nearly 50 local publications. However, this support would be jeopardized if the law passes. The News Publishers’ Association, a representative body for New Zealand’s media sector, responded critically to Google’s statement, describing it as a form of coercion. Andrew Holden, the association’s Public Affairs Director, emphasized that the government should be able to enact laws aimed at protecting democracy without facing corporate intimidation.
Australia was the first country to introduce legislation compelling tech giants like Google and Meta to negotiate with news outlets, passing a law in 2021. Initially, these companies responded by restricting news content on their platforms for Australian users, but they eventually negotiated agreements, reportedly valued at AUD 200 million annually, to compensate Australian news outlets for the use of their content.
However, media experts note that the implementation of these agreements has faced challenges. Belinda Barnet, a media expert at Swinburne University in Melbourne, observed that Meta has chosen not to renew its contracts with Australian news media, while Google is currently renegotiating its initial deals. Similar tensions arose in Canada as it moved toward passing its own digital news bargaining laws in 2023. Once again, both Google and Meta threatened to withdraw support from Canadian media. Nonetheless, in November, Google committed to contributing CAD 100 million per year, indexed to inflation, to support Canadian news businesses.
Colin Peacock, an analyst and host of the Mediawatch program on RNZ, New Zealand’s public broadcaster, offered insights into Google’s approach. According to Peacock, Google is keen to avoid headlines that suggest another country has successfully enacted such laws, which could encourage similar legislation worldwide. While Google has pointed to its existing support for local outlets, Peacock mentioned that one recipient of Google’s funding, the publisher of a small newspaper, testified before a parliamentary committee earlier this year that the financial support he received was insufficient, not even enough to hire a single graduate reporter.
New Zealand’s Minister for Media and Communications, Paul Goldsmith, has indicated that consultations on the next version of the bill are ongoing. In a written statement to The Associated Press, Goldsmith confirmed that he and his team have met with Google several times to discuss their concerns and will continue to engage with the tech company. Goldsmith also reaffirmed his intention to pass the legislation by the end of the year.
As the government weighs its next steps, the ongoing negotiations and potential ramifications of the proposed law will have significant implications for the future of New Zealand’s media landscape and its relationship with global tech giants.
