The news of New Zealand may soon be taken away from the view of Google owing to the proposed law, which seeks to pay for the media organizations for the content of news shared on their platforms, according to an alert issued by the search giant.
The proposed law is called the Fair Digital News Bargaining Bill, and it aims to address the financial challenges that local news publishers face with global tech platforms like Google and Meta, or simply Facebook. The proposals follow similar legislation that has already taken effect in Australia and Canada and has sparked vigorous debates between the tech companies and the governments regarding compensations for content from media outlets.
It argues that this bill can have quite an impact on New Zealand’s media landscape. According to Google, the legislation will favor the bigger media companies and push out the smaller, independent publishers. Moreover, Google argues that it goes against the principles of an open internet and threatens business uncertainty, given potentially uncapped financial exposure such regulations may bring about.
Google cited, in response, that it would create unbearable conditions that will leave them with no choice but to stop the promotion of New Zealand news content across services such as Google Search, Google News, and Discover.
Google has been working with New Zealand publishers through initiatives such as Google News Showcase, which pays nearly 50 local publications for content. But these agreements could be ended if the law becomes a reality. The tech giant insists that it does not need to take these kinds of measures but believes alternative solutions should be found to not harm smaller media companies in creating a sustainable, diverse news ecosystem.
Mixed feelings have met the bill in New Zealand. While some lawmakers believe that it would give them the much-needed support in local journalism, other lawmakers and parties, like ACT, are against the bill. For instance, ACT Leader David Seymour is against the bill, saying that it could lead to worse scenarios in New Zealand and smaller media houses because they would have lost the pool to reach a wider audience through search results. Seymour likened the government to playing “chicken” with the technology giant while challenging the government to a more market-driven approach that would not dictate consumer choice.
New Zealand’s government, headed by Media and Communications Minister Paul Goldsmith is still in consultation over the bill. “There are differences in the sector, but we’re talking to people,” Goldsmith admitted of the negotiations. The government has emphasized support for local journalism while still being averse to the economic fallout from such laws. Estimates have quoted that the bill would raise NZD 30 million from agreements with Google, though this final figure would be contingent on how negotiations were executed.
It has added another layer of complexity over an already complicated issue. Australia, for instance, witnessed its own flavor of comparable legislation stall the process between the government and tech companies when Facebook temporarily blocked news content in that country. Meta went further to block all news content in Canada. All these precedents leave other countries in a skeptical stance regarding what will happen to the flow of information and media revenue.
As New Zealand moves forward on this issue, the debate continues to throw spotlight on how traditional media is now breaking up with digital platforms. Will the bill pass? What will the implications be? Time alone will tell. But it is evident that some balance will have to be struck between the government and tech companies like Google—not to benefit either, but for them to serve local journalism without disturbing the overall media landscape.
