What makes it a problem for the search giant is the fact that with the proposed law, it will be necessitated to pay for links and snippets in Search. Google says this provision “would set an untenable precedent” for its business which is actually “not compatible with how search engines work.”
Mel Silva, VP Google Australia and New Zealand, in her opening statement to the Senate Economics Committee Inquiry, had said that the principle of free linking between websites is fundamental to Search.
Also with the difficult financial and operational risk if this part of the Code becomes law, Google will have no choice but to stop making Search available in Australia.
“That’d be a bad outcome not just for us, but for the Australian people, media diversity and small businesses who use Google Search.” the Mel Silva says
Google has, however, proposed technical review in 3 areas to address the issue it has with the proposed law. The company stated that these amendments will make pay available to publishers for value, without breaking Google Search.
Instead of paying for links and snippets, Google has proposed that the Code to allow it to make the payment to Australian news publications for their value.
The News Showcase program was started in 2020 and paid news publishers for their content in curating panels of news that showed on Google services.
The search giant had made News Showcase contracts with 7 publishers in Australia already.
Australian Prime Minister, Scott Morrison, while responding to Google’s threat, told reporters that they do not respond to threats.
“Australia makes our rules for things you can do in Australia. That is done in our Parliament. It is done by our government. And that is how things work here in Australia.” the Prime Minister concluded