Google of Alphabet Inc said on Friday it would block its search engine in Australia if the government continued with a new code that would force it and Facebook Inc to pay media companies for the right to use their content.
The Google threat is escalating a battle with publishers such as News Corp., which is being closely monitored around the world. The search giant has warned that its 19 million Australian users will face a deteriorating search and experience on YouTube if the new code is implemented.
GET THE FOX BUSINESS, CLICK HERE
Australia is on track to pass laws to force technology giants to negotiate payments with local publishers and broadcasters for content included in search results or newscasts. If they cannot make a deal, an arbitrator appointed by the government will decide the price.
“Together with the unmanageable financial and operational risk, if this version of the code becomes law, it will not give us a real choice but to stop accessing Google Search in Australia,”
Silva does not mention YouTube in the prepared notes.
Google’s comments have drawn sharp criticism from Australian Prime Minister Scott Morrison, who said the country sets its own rules for “the things you can do in Australia”.
NEW GOOGLE UNION CONDEMNS INVESTIGATION OF AI ETHICS RESEARCHERS
“People who want to work with this in Australia are welcome. But we are not responding to threats,” Morrison told reporters.
Google called the code too 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 have the largest contribution to revenue and profits worldwide.
|GOOGL||ALBAVET INC.||1,884.15||+4.08||+ 0.22%|
The United States government this week asked Australia to repeal proposed laws that have broad political support, and suggested that Australia follow a voluntary code instead.
GOOGLE EMPLOYEES FOR THE ALPHABET TO FORM A UNION
Australia announced the legislation last month after an investigation found that Google and social media giant Facebook had too much market power in the media industry, which it said posed a potential threat to a well-functioning democracy.
Google’s threat to limit its services in Australia came hours after the internet giant struck a deal to pay for content with some French news publishers as part of a three-year $ 1.3 billion publisher support campaign.
CLICK HERE TO READ MORE ABOUT FOX BUSINESS
Google’s testimony “is part of a pattern of threatening behavior that is chilling for anyone who values our democracy,” said Peter Lewis, director of the Center for Responsible Technology at the Australian Institute.
(Report by Renju Jose; Edited by Byron Kay and Gary Doyle)