Google Threatens To Pull Its Search Engine From Australia If Forced To Pay For News

Google is the most popular service the web has ever seen. It's safe to say that there is not a single person on the web that doesn't know Google.

With such a large and powerful brand, billions of people depend on Google. That is how big the influence Google has on people, and Google clearly knows that.

And this is why it can voice its opinion, even in the face of governments, when dealing with laws and regulations.

Alphabet Inc's which is Google's parent company, said that it would block its search engine in Australia if the government proceeds with a law that would force it and Facebook to pay media companies for the right to use their content on its search results or news feed.

If Google and Facebook cannot strike a deal with s media source, a government-appointed arbitrator will decide the price.

This law can indeed hurt Google's business, and Google doesn't want that.

In an open letter, Mel Silva, managing director for Google Australia and New Zealand:

"The ability to link freely between websites is fundamental to Search. This code creates an unreasonable and unmanageable financial and operational risk to our business. If the Code were to become law in its current form, we would have no real choice but to stop making Google Search available in Australia. That is the last thing I or Google want to have happen—especially when there is a way forward that allows us to support Australian journalism without breaking Search. We think that would be a bad outcome not just for us, but for the millions of people and businesses across Australia who use Google Search every day."

And here, Google said that the law is overly broad.

Without revisions, it could be forced to offer a very limited search tool, which is too risky.

"The Code should preserve a system where publishers are free to decide whether their content can be found in Google Search or Google News," said Mel Silva in a blog post on November 2020.

[block:block=87]

Alphabet has been lobbying against Australia's plan for months, saying that the law “would set an untenable precedent for our business, and the digital economy” and that it’s “not compatible with how search engines work.”

Australia’s Competition and Consumer Commission (ACCC) that drafted the law, suggested that the law shouldn't affect Google’s search business, saying that “Google will not be required to charge Australians for the use of its free services such as Google Search and YouTube, unless it chooses to do so.”

The ACCC believes the proposed law addresses “a significant bargaining power imbalance between Australian news media businesses and Google and Facebook.”

Google disagrees.

Rather than complying with the proposed law, Google would rather pay publishers specifically for its Google News products.

"Withdrawing our services from Australia is the last thing that Google wants to have happen, especially when there is another way forward."

"There is a clear pathway to a fair and workable code, with only slight amendments."

The search giant warned that its 19 million Australian users would face degraded Search and YouTube experiences if the code were enforced.

While Google does not disclose how much money the search engine earns from people in Australia, but its already known that ads on Google Search are among the biggest contributor to Alphabet's revenue and profit globally.

Even the U.S. government asked Australia to scrap the proposed law, which also have broad political support, and suggested Australia to pursue a voluntary code instead.

This proposed 'News Media Bargaining Code' that is at this time in draft, targets Google and Facebook. It follows a 2019 inquiry in Australia that found the tech giants to be taking a disproportionately large share of online advertising revenue, even though they take most of their content from outside sources.

Since the 'COVID-19' coronavirus pandemic plagues the world, lots of news and media industry are hit hard by the pandemic.

Among other reasons, the law here is meant to help them.

In response to Google's threat, Australian Prime Minister Scott Morrison expects to have Microsoft Bing if the country becomes Google-less.

As for Facebook, the only other company targeted by the legislation, also opposes the law.

The social media platform said that it’s also considering blocking its Australians users from sharing news on Facebook if the law is pushed through.

Further reading: Australia Passes The Law Requiring Google And Facebook To Pay For News Content