Google (NASDAQ:GOOGL) To Remove Its Search Engine From Australia Once “New Bargaining Code” Becomes Law

Google (NASDAQ:GOOGL) has said that it will remove its search engine from Australia if the country’s proposed law requiring the company to pay publishers and content creators goes into effect.

Google threatens to withdraw search engine From Australia

In a testimony to the Australian Senate, the company said that if the proposed laws get into effect it will not have an alternative but to pull its engine in the country. The proposed is part of the latest global efforts to regulate how big tech companies use content from publishers to drive their ad business which has had an impact on mainstream media. Countries across the globe have tried to address the social media platforms’ relationship with mainstream media by enacting copyright law.

However, for Australia, this is a market distortion form that requires an intervention which is the reason they introduced the s bargaining code. According to the code companies such as Facebook Inc. (NASDAQ:FB) and Google will negotiate a fair price with publishers to use news content. Interestingly the legislation is before the Australian parliament and the Senate Economics Legislation Committee is currently taking views from interested parties.

Google says the proposed model untenable

Mel Silva, Google Australia and New Zealand’s VP told the Senate Committee that after looking at the legislation the company doesn’t see an alternative. She added that considering the operational and financial risks they don’t think they can continue making Google search engine available in Australia.

For months now, Google has been lobbying against the code which will force it to pay when showing snippets and links to new stories and not just articles that feature in Google News. The company argues that this is untenable for the company’s business and the digital economy because that is incompatible with how the search engine operates.

Australia‘s Prime Minister Scott Morrison replied to Google’s comments saying that the country doesn’t respond to threats. Morrison added that the country makes its rules and what one can do in the country and what parliament does is the government’s business.