SYDNEY, January 22 (Reuters) – Google said on Friday it would shut down its search function in Australia if the government continued with a media code that would force it and Facebook Inc. to pay local media companies for sharing their content.
Australia is on track to pass laws that will allow the Big Tech giants to negotiate with local publishers and content broadcasters. If they are unable to reach an agreement, a judge-appointed arbitrator will determine the price.
“The arbitration model of the code with bias criteria presents unmanageable financial and operational risks for Google,” Mel Silva, managing director of Australia and New Zealand, told a Senate committee.
“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.”
Australia announced the legislation last month after an investigation found that Google and social media giant Facebook, which is owned by Alphabet Inc, possessed too much market power in the media industry.
The US government this week called on Australia to scrap the proposed laws, which have broad political support, and suggested that Australia follow a voluntary code instead.
Google’s threat to limit its services in Australia came hours after the internet giant entered into an agreement with some French news publishers.
Google’s testimony “is part of a pattern of threatening behavior that is chilling for all who value our democracy,” said Peter Lewis, director of the Australia Institute’s Center for Responsible Technology.
Reporting by Renju Jose Edited by Byron Kaye and Gerry Doyle