Google says it will shut search engine in Australia if forced to pay for news
Google said on Friday (January 22) it would block its search engine in Australia if the government proceeds with a new code that would force it and Facebook to pay media companies for the right to use their content.
Google's threat escalates a battle with publishers such as News Corp that is being closely watched around the world. The search giant had warned that its 19 million Australian users would face degraded search and YouTube experiences if the new code were enforced.
Australia is on course to pass laws that would make tech giants negotiate payments with local publishers and broadcasters for content included in search results or news feeds. If they cannot strike a deal, a government-appointed arbitrator will decide the price.
Google's comments drew a sharp rebuke from Australian Prime Minister Scott Morrison who said the country makes its rules for "things you can do in Australia."
Google has called the code overly broad and said that without revisions, offering even a limited search tool would be too risky. The company does not disclose sales from Australia, but search ads are its biggest contributor to revenue and profit globally.
The United States government this week asked Australia to scrap the proposed laws, which have broad political support, and suggested Australia should pursue a voluntary code instead.
Australia announced the legislation last month after an investigation found Google and social media giant Facebook held 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 just hours after the internet giant reached a content-payment deal with some French news publishers as part of three-year, $1.3-billion push to support publishers.