‘It’s a reality:’ Google threatens to stop search in Australia due to media code -
22nd January 2021

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By Lisa Visentin and Zoe Samios

Google’s threat to cut off search to Australian users and walk away from $4 billion in revenue has sparked warnings the digital giants are not bluffing over laws designed to force them to pay for news.

The $1.8 trillion search giant’s local managing director Melanie Silva told a Senate committee hearing on Friday that Google would shut off search in Australia if the government’s proposed media bargaining code becomes law. Experts said the threat is not idle, with Google likely fearful the code could set a global precedent.

Melanie Silva, Google managing director and vice-president of Australia and New Zealand, says the company will cut off search to Australian users if it is forced to pay for news content.CREDIT:ALEX ELLINGHAUSEN

Prime Minister Scott Morrison said Australia would not respond to the threats as news media companies fired back at suggestions their content did not add value to the platforms.

“Australia makes our rules for things you can do in Australia. That’s done in our Parliament. It’s done by our government, and that’s how things work here in Australia,” he said. “People who want to work with that, in Australia, you’re very welcome. But we don’t respond to threats.”

The code aims to force digital platforms to pay media companies for news content, and follows a 12-month review into Google and Facebook by the competition watchdog. The legislation, which was introduced into the House of Representatives in December, comes amid a push by global governments to rein in the power of digital monopolies.

Google’s threats follow similar remarks made by Facebook Australia’s managing director Will Easton in September, who announced plans to remove news articles from the social media’s main app if the media code is passed by Parliament.

Montaka Global fund manager Andrew Macken, whose company owns shares in both Google and Facebook, said he believed they were not empty threats.

“I suspect it is [legitimate],” Mr Macken said. “Google would perhaps rather lose Australia (a relatively small global market) to avoid setting a precedent for its other larger markets.”

Google’s comments marked the first time the digital giant publicly threatened to disable its primary search function to all Australians in its response to the proposed laws.

Hannah Marshall, a partner at Marque Lawyers that specialises in competition law, said the code in its current form left the tech giants with no choice.

“The code now says that Google and Facebook have to pay for the right to supply audience to the news publishers,” Ms Marshall said. “That makes no legal or commercial sense.”

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(The Sydney Morning Herald)