In a mounting dispute between Google and the New Zealand government, the tech giant has threatened to cease linking to local news content if the Fair Digital News Bargaining Bill is passed. This proposed legislation would require major tech platforms like Google to compensate news publishers for using their content. The move has stirred heated debates, with accusations of corporate bullying from media organisations and concerns over the potential impact on the future of New Zealand journalism.
The Purpose of the Fair Digital News Bargaining Bill
The Fair Digital News Bargaining Bill is designed to address the growing imbalance between tech giants and news publishers. As news organisations have struggled to maintain advertising revenue in an increasingly digitised news industry, companies like Google and Meta have benefited significantly from sharing news content without compensating the creators. In New Zealand, this issue has been exacerbated by the recent loss of over 200 jobs in the national media industry, which has already seen a significant decline in its workforce since 2018.
The bill, introduced by the Labour government and supported by coalition partners, aims to create a fairer revenue-sharing model. It seeks to ensure that all media outlets, including rural, regional, and Māori publications, receive compensation for their content used by tech platforms. Media and Communications Minister Paul Goldsmith, who has overseen the development of the bill, views it as crucial to sustaining local journalism. The government has emphasised that negotiations with platforms like Google and Meta are essential to stemming the flow of advertising dollars offshore, which has been a key driver behind the shrinking news sector.
Google’s Stern Opposition and Threats
In response to the proposed legislation, Google has voiced significant concerns. Caroline Rainsford, Google New Zealand’s Country Director, stated in a blog post that the bill introduces a “link tax” that would require the company to pay merely for linking to news articles, which, according to Google, goes against the fundamental principles of the open web. The company argues that such a tax would not only be ineffective but would also harm smaller regional publishers more than it would benefit them.
Google has gone further, warning that if the bill proceeds, it will be forced to stop linking to New Zealand news content on its services, including Google Search, Google News, and Discover. This would also include ending existing commercial agreements with local publishers, which currently see Google paying millions of dollars annually to nearly 50 New Zealand news outlets through licensing programs such as Google News Showcase. “These are not outcomes we want for New Zealanders, news publishers, or our business,” said Rainsford, adding that Google has proposed alternative solutions that would avoid the negative consequences of the current bill.
Accusations of Corporate Bullying
Google’s threats have been met with strong reactions from New Zealand’s media industry. The News Publishers Association (NPA), which represents the country’s media outlets, has accused the company of corporate bullying. Andrew Holden, the NPA’s public affairs director, stated that Google’s aggressive tactics “demonstrates the kind of pressure that it has been applying to the Government and news media companies.” Holden pointed to similar actions taken by Google in Australia and Canada, where the tech giant employed hardball tactics before ultimately making financial concessions.
Holden argues that this is not a link tax, “It creates the environment for New Zealand media companies to sit down and have a proper commercial negotiation with big tech companies about their use of our journalism,” he said. He further emphasised that the bill is necessary to rectify the market distortions created by Google and other tech platforms, which have become some of the most powerful corporations in the world. “The government of New Zealand should be able to make laws that strengthen democracy in this country without being subjected to this kind of corporate pressure,” he added.
Political Opposition and the ACT Party’s Criticism
The ACT Party has been vocal in its criticism of the bill. ACT leader David Seymour argues that the bill represents government overreach and warns that if Google follows through on its threats, New Zealand’s media industry will suffer, particularly for smaller outlets. He believes that government intervention in the market is unnecessary and that it should not be the role of politicians to protect businesses from the evolving preferences of consumers. Smaller media outlets would be the ones to bear the brunt of Google’s withdrawal, Seymour argues, renewing his call for National and New Zealand First to abandon the bill.
Lessons from Australia and Canada
The standoff between New Zealand and Google echoes similar battles in other countries. In 2021, Australia became the first country to introduce legislation forcing tech companies to pay for news content. While Google initially threatened to cut off news links in Australia, it eventually struck deals with major publishers worth approximately US$137 million (approx. NZ$220 million) annually. However, reports indicate that these agreements are now under renegotiation, and Meta has declined to renew its contracts with Australian media outlets altogether.
In Canada, a similar law was enacted in 2023, prompting Google to threaten a complete withdrawal from supporting Canadian news content. After months of tension, Google agreed to contribute CA$74 million annually to support Canadian news publishers.
These international cases demonstrate the complex and often contentious nature of negotiations between governments, media organisations, and tech platforms. The worrying question is whether New Zealand has the same bargaining power.
Potential Consequences for New Zealand’s Media Ecosystem
Should Google follow through on its threat to stop linking to New Zealand news content, the impact on the local media landscape could be significant. Smaller and regional publishers, which rely heavily on traffic from Google’s services, would likely be the hardest hit, as they lose a critical source of visibility and reach. While larger media organisations may have the resources to weather the storm, the long-term sustainability of smaller outlets could be jeopardised, raising questions about the future viability of local journalism.
Additionally, the broader media ecosystem could face disruption if major digital platforms like Google disengage from supporting news content. This scenario has already played out in other countries, where tech companies have used their market dominance as leverage in negotiations with governments.
Ongoing Negotiations
The New Zealand government remains in the consultation phase regarding the bill. Media and Communications Minister Paul Goldsmith has acknowledged the concerns raised by Google but insists that the government is committed to finding a solution that balances the need to support local journalism with the realities of the digital marketplace. Goldsmith has met with Google on several occasions and will continue to engage in discussions as the bill progresses.