Google says it will remove search functionality in Australia if the media code becomes law

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

The threat from Google is escalating a battle with publishers such as News Corp, which is closely watched around the world. The search giant had warned that its 19 million Australian users would suffer reduced search and YouTube experiences if the new code was enforced.

Australia is on track to pass laws that would lead tech giants to negotiate payments with local publishers and broadcasters for content included in search results or news feeds. If they can’t close a deal, a government-appointed arbitrator will set the price.

“Coupled with the unmanageable financial and operational risk if this version of the Code were to become law, we would have no choice but to no longer make Google Search available in Australia,” said Mel Silva, Australia and New York General Manager. Zealand. a senate committee.

Silva made no mention of YouTube in prepared comments.

Google’s comments were sharply disapproved by Australian Prime Minister Scott Morrison, who said the country is making its rules for “things you can do in Australia.”

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

Google called the code too broad, saying that offering even a limited search functionality without revisions would be too risky. The company does not disclose sales from Australia, but search ads are the largest contributor to sales and profits worldwide.

The United States government this week asked Australia to scrap the proposed laws, which have wide political support, and suggested that Australia should instead follow a voluntary code.

Australia announced the legislation last month after an investigation found that Google and social media giant Facebook had too much market power in the media industry, a situation it believes posed a potential threat to a functioning democracy.

Google’s threat to restrict its services in Australia came just hours after the internet giant reached an agreement to pay for content with some French news outlets as part of a three-year $ 1.3 billion push to support publishers.

Google’s testimony “is part of a pattern of threatening behavior that is chilling to anyone who values ​​our democracy,” said Peter Lewis, director of the Australia Institute’s Center for Responsible Technology.