Google threatens to stop search in Australia

Friday during a Senate hearing in Canberra, Google (GOOGL) Australia’s managing director Mel Silva said the draft legislation was ‘unworkable’ and would break the way millions of users searched for content online.
“If this version of the code were to become law, it would give us no real choice but to stop making Google Search available in Australia,” she told lawmakers. “It would be a bad outcome not only for us but also for the Australian people, media diversity and small businesses that use Google Search.”

The company’s biggest concern about the proposal is that it will ‘only require payments for links and excerpts just after the news results in Search’, according to Silva.

“The free service that our Australian users provide, and our business model, is based on the ability to switch freely between websites,” she said.

Google and Facebook have been talking to publishers for years about how they display their content, while media companies argue that technology giants should pay them for the privilege. Critics of the two technology companies point out that it puts news publishers in a decisive position because they dominate the online advertising business, leaving them scrambling for profit.

According to the Australian Competition and Consumer Commission, which according to the Australian Competition and Consumer Commission can negotiate the parties with the new legislation separately or jointly with Facebook and Google, certain media companies may be able to enter into arbitration. law.

Australian Prime Minister Scott Morrison later hit back at Google.

“Let me be clear. Australia makes our rules for things you can do in Australia. It’s done in our Parliament. It’s done by our government and so things work here in Australia and people who want to work with it in Australia, “You are very welcome,” he told a news conference. “But we are not responding to threats.”

Asked about Morrison’s comments, Google declined to comment.

A warning for ‘consequences’

Both U.S. technology companies have been vehemently opposed to it since its launch this summer. Last August, Google used its homepage to warn Australians that the bill would harm their ability to search and lead to ‘consequences’ for YouTube users.
Google's clash with Australian regulators escalates

The US giant is now proposing three changes to the code, including how it will compensate news publishers.

One suggestion is that News Showcase – a program launched by Google last year to pay publishers more than $ 1 billion over the next three years – be formalized and expanded in Australia. The company already pays seven publishers in the country for the content.

The company also wants to change a requirement that would force Google to notify publishers of changes to its algorithm, saying it should only do so “to make sure publishers are able to respond to changes that affect them.”

“There is a clear path to a fair and workable code,” Silva said. “Withdrawing our services from Australia is the last thing I or Google want to happen – especially if there is another way forward.”

An aggressive fight

Facebook (FB) also push back.

In the same Senate hearing on Friday, Simon Milner, vice president of public policy for Asia-Pacific, said the company could eventually block news content in Australia, although he stressed a commitment “to make the law workable.”

Milner has told lawmakers there is already a “deterrent effect of this law on investment in the Australian news industry”, citing a recent decision by Facebook to launch a news product in the UK instead of Australia.

“Sir Tim Berners-Lee said that this precedent set by this law” could render the web unworkable around the world, “he added, citing the inventor of the web.
Google agrees to pay French publishers for news

Regulators say legislation is needed to level the playing field for news media in Australia, as news offices across the country have reduced service, been temporarily closed or permanently closed.

Similar cases have emerged in other countries. Google announced on Thursday that it will pay news publications in France for the use of their content online in an important agreement that may soon be repeated elsewhere in Europe under new copyright laws.

Hanna Ziady contributed to this report.

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