Google has threatened to cease linking to New Zealand news articles and terminate its agreements with local media outlets if the New Zealand government passes a new law requiring digital companies to pay for news content. The regulation is intended to promote equitable income sharing between digital platforms and news publishers, which Google claims will require them to make ‘significant changes’ to their products and investments in the country.
Caroline Rainsford, Google New Zealand's Country Director, voiced concern in a blog post that the new rule will result in ‘uncapped financial exposure’ and undermine the concept of an open internet. The measure, which expands on the framework established by the previous Labour Party-led government, is presently being reviewed but is anticipated to pass with backing from the majority of political parties, despite opposition from ACT, the minority government coalition partner.
"We'd be forced to stop linking to news content on Google Search, Google News or Discover surfaces in New Zealand and discontinue our current commercial agreements and ecosystem support with New Zealand news publishers," Rainsford had said.
The proposed legislation is similar to a law passed in Australia in 2021 that forced digital companies to establish content supply agreements with media entities. A government evaluation of Australian legislation in 2022 found it to be mainly successful. However, Google contends that New Zealand's measure violates the principles of an open internet and may disproportionately hurt smaller publishers.
New Zealand's Minister for Media and Communications, Paul Goldsmith, recognised Google's concerns while saying that the government was still in the consultation phase. "My officials and I have met with Google on several occasions to discuss their concerns and will continue to do so," according to a statement he issued.
The New Zealand government is presently refining the law, with some changes expected to bring it more in line with Australian rules. Despite ACT's resistance, the bill is expected to receive enough cross-party support to pass once finalised. If the measure is passed, it might result in significant changes in how New Zealanders receive news material via digital platforms. The outcome of the continuing negotiations between Google and the New Zealand government is expected to influence the final shape of the legislation and its impact on the media ecosystem.
