Google's New Zealand subsidiary has announced in response to the Fair Digital News Bargaining Bill that it may be compelled to cease linking to news content through Google Search, Google News, or Discover within the nation. This legislation introduces a "link tax," which mandates that Google pay for merely linking to news articles.
In a statement on its New Zealand blog, Google indicated it would need to terminate current commercial agreements and its support within the news ecosystem for New Zealand news publishers.
Although Google supports the government's initiative towards a sustainable future for New Zealand's news industry, it expressed concerns that the Bill is not the optimal solution. The company stated that the proposed "link tax" model is flawed and could lead to unforeseen consequences and non-viable frameworks.
The concept of link taxes contradicts the open web's principles and has not demonstrated effectiveness in bolstering journalism. Previous instances in Australia and Canada showed platforms withdrawing when maintaining news links was no longer viable.
Google has shared its apprehension openly in public submissions and ongoing discussions with the government.
The company has warned the authorities that significant alterations to its products and news investments would be necessary should the Bill proceed as it currently stands and become law. It reiterated that it would have to end prevailing commercial agreements and ecosystem support with the country's news publishers.
Google remarked, "These are not outcomes we desire for New Zealanders, news publishers, or our business. We believe there is a logical path forward, and we have suggested reasonable alternatives to the government that protect smaller, local, or regional publishers while preserving open web principles, consistent with recent agreements we've struck elsewhere."
Moreover, Google emphasized its ongoing contribution to a sustainable, diverse, and innovative news ecosystem in New Zealand through local partnerships and investments, including the Google News Showcase. This licensing initiative encompasses over 95% of New Zealand's digital news publishers, with Google disbursing millions of dollars annually to nearly 50 local publications.
