The company’s main concern with the proposal is that it “requires payments for links and snippets only for news results in Google Search,” Silva said.
“The free service we provide to Australian users, and our business model, is based on the ability to link freely between websites,” she said.
Google and Facebook have struggled with publishers over how they display their content for years, with media companies feeling the tech giants should pay them for the privilege. Critics of the two tech companies point out that since they dominate the online advertising business, it gets news outlets in trouble and makes them hunt for leftovers.
Under the new legislation, certain media outlets could negotiate individually or collectively with Facebook and Google – and enter into arbitration if the parties cannot reach an agreement within three months, according to the Australian Competition and Consumer Commission, which announced the proposed legislation.
Australian Prime Minister Scott Morrison hit back at Google later on Friday.
When asked about Morrison’s comments, Google declined to comment.
A warning of ‘consequences’
The US giant is now proposing three changes to the code, including how it would compensate news outlets.
The company also wants to amend a requirement that would force Google to notify publishers of changes to its algorithm, saying it should do this only “to ensure that publishers can respond to changes that affect them” .
“There is a clear path to fair and workable code,” said Silva. “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
In the same Senate hearing on Friday, Simon Milner, Facebook’s vice president of public policy for Asia-Pacific, said the company could eventually block news content in Australia, although he stressed the promise “to make the law workable.”
Milner told lawmakers that there was already “a deterrent effect of this law on investments in the Australian news industry,” citing a recent decision by Facebook to launch a news product in the UK rather than Australia.
Regulators say the legislation is needed to level the playing field for the news media in Australia, as newsrooms across the country have reduced service, closed temporarily or closed permanently.
– Hanna Ziady contributed to this report.