Oct 4, V7N - Google has warned that it will stop linking to New Zealand news articles and terminate its agreements with local news organizations if the government proceeds with a law requiring tech companies to pay for news content. This move follows New Zealand’s government advancing legislation that aims to ensure fair revenue sharing between digital platforms and news outlets, a proposal similar to Australia's 2021 law that mandated negotiations between internet companies and media publishers.

Caroline Rainsford, Google New Zealand’s Country Director, expressed concerns that the proposed law, if passed in its current form, would force Google to make significant changes to its operations. These changes would include discontinuing news links on Google Search, Google News, and Discover, as well as ending commercial agreements with New Zealand news publishers. Google argues that the bill conflicts with the open nature of the internet, could harm smaller publishers, and introduces financial uncertainties for its business model.

New Zealand’s Minister for Media and Communications, Paul Goldsmith, emphasized that the legislation is still under review, and the government is consulting with various stakeholders, including Google. Despite opposition from the minority government coalition partner ACT, the bill is expected to gain enough cross-party support to pass.

Australia's 2021 law, which inspired this proposal, required internet companies to negotiate deals with media outlets. A 2022 Australian government review found the law to be largely successful in securing fair compensation for news media.

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