Google may stop linking to news content on its platforms due to a proposed ‘link tax’ that would require payment for ’simply linking’ to news articles.
Google will stop linking to New Zealand news articles if the government implements a law to force the tech giant to pay for content.
The New Zealand government is considering legislation called the Fair Digital News Bargaining Bill to compensate news publishers for the value of their news content made available by digital platforms online.
However, on Friday, Caroline Rainsford, Google New Zealand’s country director, said in a blog that if the law passes in its current form, Google would remove news links from all its platforms in the country.
She said this “bill proposes a ‘link tax’ that would require Google to pay simply for linking to news articles.”
“We’d be forced to stop linking to news content on Google Search, Google News, or Discover surfaces in New Zealand and discontinue our current commercial agreements and ecosystem support with New Zealand news publishers,” Rainsford said.
“This is certainly not an outcome we want, not just for the company, but for the news publishers and Kiwis who rely on their reporting.”
Pay Deals
The legislation is modeled on similar laws in Australia and Canada and acts as an incentive for digital platforms to reach pay deals with local news outlets.
New Zealand Media and Communications Minister Paul Goldsmith said he was considering the range of views in the sector.
“We are still in the consultation phase and will make announcements in due course,” he said in a statement. “My officials and I have met with Google on a number of occasions to discuss their concerns, and will continue to do so.”
The current governing center-right New Zealand political party, which won elections last year, said it would progress legislation started by the previous Labour Party-led government.
News Media Bargaining Code
Last year, Google said it would block Canadian news on its platform after the government under Prime Minister Justin Trudeau passed Bill C-18, or the Online News Act.
At the time, Google’s president of global affairs, Kent Walker, said in a blog post that the law was “unworkable.”
Google eventually reached a deal, agreeing to pay CA$100 million ($73.6 million) annually to news publishers in the country
Australia implemented a similar law in March 2021 after negotiations with tech firms, which briefly led to Facebook shutting down news feeds in the country.
Known as the News Media Bargaining Code, the law was enacted to ensure that “news media businesses are fairly remunerated for the content they generate, helping to sustain public interest journalism in Australia.”
In December 2022, the Albanese government said in a report that “it is reasonable to conclude that the Code has been a success,” and that Google and Facebook owner Meta had more than 30 agreements with a broad range of news businesses.
“At least some of these agreements have enabled news businesses to, in particular, employ additional journalists and make other valuable investments to assist their operations,” it added.
‘Prop Up the Edifice’
In November 2023, the Law Association of New Zealand analyzed the Fair Digital News Bargaining Bill.
It said that the state has provided NZ$105 million (US$61 million) in subsidies to mainstream media (MSM) since 2020.
The association said that under normal circumstances, without state subsidies, “MSM would have to adapt or die.” However, in recent years, the state has artificially supported the industry.
“But the State steps in to provide a subsidy so MSM will continue to provide a convenient outlet for State messaging. This may not be the reality, but the optics are terrible,” it said.
It added that the state “has a vested interest in the preservation of MSM in the current—albeit unsustainable—model,” and that it will require digital platforms to “prop up the edifice.”
The Association also said that “this support is no longer sustainable” and said it thinks that as a result, the state intends to implement a “compelled bargaining process” to ensure that online platforms subsidize MSM.
Reuters contributed to this report.