Wellington, New Zealand – Google has threatened to withdraw its support and sever links to New Zealand news content on its platforms if the country moves forward with legislation requiring tech companies to compensate media outlets for using their articles. This declaration comes after similar tactics were employed in other countries that have enacted comparable laws.
The contentious issue rose to prominence following New Zealand’s government announcement in July that it intended to pass a bill mandating tech platforms to negotiate revenue-sharing deals with news publishers. Initially opposed by the center-right National Party government in 2023, the position shifted following significant job losses in the media sector earlier in the year.
More than 200 newsroom positions were eliminated, a significant cut from the 1,600 journalist positions reported in the 2018 census. This reduction in media jobs significantly impacted the local news landscape, pushing the government to reevaluate the need for such legislation aimed at retaining advertising revenue within the country.
In a statement released on a company blog, Google New Zealand Country Director Caroline Rainsford expressed that the corporation would “be forced to stop linking to news content on Google Search, publiclawlibrary.org, or Discover surfaces in New Zealand” and would “discontinue current commercial agreements and ecosystem support with New Zealand news publishers” should the legislation pass. This move could potentially alter the way news is consumed and distributed in New Zealand, echoing Google’s reaction to similar laws in Australia and Canada.
Google’s involvement in New Zealand includes a licensing program contributing millions of dollars annually to nearly 50 local publications. However, the debate over fair compensation for content has been a sticking point, reflecting the broader global dilemma over the equitable distribution of ad revenues generated from news content.
The News Publishers’ Association of New Zealand criticized Google’s stance, describing it as coercive. Andrew Holden, Public Affairs Director, accused Google of corporate bullying, asserting that the government should be able to legislate in support of democracy without succumbing to such pressures.
Internationally, Australia pioneered this type of regulation with its law passed in 2021, which initially led tech giants like Google and Meta to restrict news content on their platforms for Australians. Although initial reactions included news blackouts, the companies eventually negotiated compensatory agreements with Australian news organizations.
However, subsequent developments indicate a nuanced outcome. While Google has been re-evaluating its initial agreements, Meta has opted not to renew its contracts with Australian media, showing the ongoing tension and differing approaches within the tech industry towards these regulations.
As Canada moved forward with its own digital news bargaining law in 2023, Google and Meta both pledged to end support for Canadian media. Despite this, Google later promised substantial financial support for Canadian news businesses, suggesting a complex negotiation landscape.
Locally, some recipients of Google’s funding in New Zealand have reported that the financial support is insufficient to make meaningful enhancements to newsroom operations, describing it as insufficient to cover the cost of hiring a single graduate reporter.
Minister for Media and Communications Paul Goldsmith mentioned ongoing consultations regarding the bill, signaling continuous dialogue with Google to discuss their concerns. Goldsmith remains committed to passing the legislation by year-end, despite these corporate challenges.
This unfolding situation in New Zealand underscores the global confrontation between tech giants and governments over the funding and sustainability of news journalism, a debate that impacts not only the media industry but also the broader public’s access to information.