Google says it will remove search feature in Australia if media code becomes legal

Google of Alphabet said on Friday it would block its search engine in Australia if the government continued with a new code that would force it and Facebook to pay media companies for the right to use their content.

Google’s threat is escalating into a battle with publishers like News Corp that are being closely watched around the world. The search cataract has warned that its 19 million Australian users will experience poor search and YouTube experiences if the new code is applied.

Australia plans to pass laws that will allow technology giants to negotiate with local publishers and broadcasters for the content included in search results or news feeds. If they can not reach an agreement, an arbitrator appointed by the government will determine the price.

“Together with the unmanageable financial and operational risk if this version of the code becomes law, it would give us no real choice but to stop making Google Search available in Australia,” said Mel Silva, Managing Director for Australia and New Zealand, said a Senate committee.

Silva made no mention of YouTube in prepared comments.

Google’s comments drew a sharp rebuke from Australian Prime Minister Scott Morrison, who said the country was making its own rules for ‘things you can do in Australia’.

“People who want to work with it in Australia are very welcome. But we are not responding to threats,” Morrison told reporters.

Google called the code too broad, saying that without reviewing it, even a limited search tool is too risky. The company does not advertise sales from Australia, but search advertising makes its biggest contribution to revenue and profit worldwide.

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.

Australia announced the legislation last month after Google and social media giant Facebook had too much market power in the media industry, a situation that he said poses a potential threat to a well-functioning democracy.

Google’s threat to limit its services in Australia comes just hours after the internet giant reached an agreement with some French news publishers over a content payment, as part of a three-year $ 1.3 billion to support 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.