Google Taking On Proposed ‘Link Tax’ in New Zealand

WASHINGTON, Oct. 7, 2024 – Google is voicing concerns about a proposed New Zealand law that would impose costs on corporations for linking to news articles online.

Google is opposing  New Zealand’s Fair Digital News Bargaining Bill, which the company claims represents a fundamental conflict with the ethos of the open internet. 

The company argued in a blog written by Google’s New Zealand Country Director, Caroline Rainsford, that link taxes have been proven ineffective in supporting journalism, citing cases where companies have chosen to disengage from carrying news links in Australia and Canada.

Google, based in  Mountain View, Calif. also cited its existing contributions to journalistic partners in New Zealand, noting that the bill could be a step backward for organizations that aimed to increase their paid subscribers as a result of their presence on digital platforms. 

Google said it might need to stop linking to news content on Google Search and Google News if the New Zealand law took effect.

In the U.S., some on Capitol Hill want Google to pay to support local journalism. The Journalism Competition and Preservation Act, a bipartisan measure sponsored in 2023 by Sens. Amy Klobuchar, D-Minn. and Bill Cassidy, R-La., would empower certain broadcast and digital news providers to collectively negotiate for payment from online platforms regarding the usage of their content.

Similar to the bill introduced in New Zealand, the JCPA has faced harsh criticism from economists who argued that the bill was incompatible with free markets and mutually beneficial negotiation.

In New Zealand, Google said that strengthening the news industry must come as a result of continued public and private support. 

Google urged the government of New Zealand to reconsider the bill, emphasizing the need for public and private coordination to develop a balanced and sustainable future for the nation’s journalism industry.

Google said it was currently the only tech company providing financial support for New Zealand’s news industry.