Google Is Threatening to Block Search in Australia if Law Passes Lawmakers in Australia want to force Google, Facebook, and others to pay for news that appears in search results and on their platforms.

By Michelle Jones

This story originally appeared on ValueWalk

Pixabay via ValueWalk

Lawmakers in Australia want to force Google, Facebook, and others to pay for news that appears in search results and on their platforms. Now Google has threatened to block Search in Australia if the bill passes.

According to The Sydney Morning Herald, Melanie Silva, managing director for Google in Australia, told a Senate committee hearing today that the company would block Search in the country if the proposed media bargaining code becomes law. Experts told the Herald that the threat is real as Google probably worries that the law could create a precedent for the rest of the globe.

Australian Prime Minister Scott Morrison said they wouldn't respond to threats from companies. Meanwhile, news outlets argued with claims that their content didn't add value to Google and other online platforms.

Google isn't the only big tech company that has threatened Australian lawmakers. Facebook Australia Managing Director Will Easton said they would remove news articles from the social network's main app if the Australian Parliament passes the media code.

Related: Facebook and Google Allegedly Cut a Deal That Reduced Ad Competition

Not empty threats

The media code would force online platforms to pay media firms for news content. It comes after Australia's competition watchdog spent 12 months reviewing Google's and Facebook's business models. The bill was introduced last month in the House of Representatives. It's part of global governments' attempts to reduce the power of tech monopolies.

Hannah Marshall of Marque Lawyers told the Sydney Morning Herald that as the code is currently written, it leaves tech firms without any choice. She said it requires Google and Facebook to "pay for the right to supply audience to the news publishers."

"That makes no legal or commercial sense," she added.

Why Google Search would have to leave Australia

She explained that if Google can't separate news from other content it links in its Search results, it will have to pull the plug on the entire service in Australia. Labor's communications spokesperson Michelle Rowland also expressed concerns about Google leaving Australia.

She said Treasurer Josh Frydenberg and Communications Minister Paul Fletcher must "explain why they can't find a way to support the media without also disrupting the millions of Australians who use Google Search and Facebook every month."

Silva told senators that Google's ultimatum was a "worst-case scenario" and a "reality" rather than a threat.

Wavy Line

Editor's Pick

A Father Decided to Change When He Was in Prison on His Son's Birthday. Now His Nonprofit Helps Formerly Incarcerated Applicants Land 6-Figure Jobs.
Lock
A Teen Turned His Roblox Side Hustle Into a Multimillion-Dollar Company — Now He's Working With Karlie Kloss and Elton John
Lock
3 Mundane Tasks You Should Automate to Save Your Brain for the Big Stuff
Lock
The Next Time Someone Intimidates You, Here's What You Should Do
5 Ways to Manage Your Mental Health and Regulate Your Nervous System for Sustainable Success

Related Topics

Business News

'Do You Hate Me?': High School Teacher Shares Wild Emails He Receives From Students

Jordan Baechler teaches high school students in Ontario, Canada.

Leadership

I Accidentally Became a Successful Entrepreneur. Here Are 5 Mistakes I Learned to Avoid When Starting a Business

PR is, at its core, storytelling. And the story of my now-thriving solo-owned business has been fraught with as many mistakes as successes, as many fall down the ladder as steps up. It's from my missteps, in fact, that I learned even more than from my triumphs, and this article presents 5 of my biggest blunders on the road to a flourishing small business.

Life Hacks

The Top 5 All-Time Best Productivity Hacks You've Never Heard Of

Want to combat chronic procrastination? Use these top five productivity hacks to put an end to this debilitating nuisance.

Growing a Business

How to Build a Thriving Community That Will Skyrocket Your Business

Build a strong community, and transform your business with these proven strategies.