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

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

The Google threat is escalating a battle with publishers such as News Corp., which is closely watched around the world. The search giant has warned that its 19 million Australian users will face degraded searches and YouTube experiences if the new code were implemented.

Australia is in the process of enacting laws that would cause technology giants to negotiate payments with local publishers and broadcasters for content included in search results or news feeds. If they cannot reach an agreement, an arbitrator appointed by the government will decide the price.

“Along with the unmanageable financial and operational risk if this version of the Code became law, it would give us no choice but to stop making Google Search available in Australia,” said Mel Silva, general manager for Australia and New Zealand. Zeeland. a senate committee.

Silva did not mention YouTube in the prepared comments.

Google’s comments have drawn harsh rebuke from Australian Prime Minister Scott Morrison, who said the country is setting its own rules for “things you can do in Australia”.

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

Google called the code too broad and said that without reviews, offering even a limited search tool would be too risky. The company does not disclose sales in Australia, but search ads are the largest contributor to revenue and profits globally.

This week, the US government called on Australia to drop the proposed laws, which have broad political support, and suggested that Australia should 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 said posed a potential threat to a well-functioning democracy.

Google’s threat to limit its services in Australia came hours after the internet giant reached a content payment agreement with some French news publishers as part of a 1.3 billion three-year deal dollars to support publishers.

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