NZ news bargaining debate signals trouble for ANZ regulators

Google's threat to exit NZ news mirrors Canadian tactics, signaling a shift in regional bargaining leverage.

David Kennedy · Venture Insights11 October 2024Period: October 20244 min read

C$100m→

Annual Google payment to Canadian Journalism Collective

30 August→

Introduction date of NZ Fair Digital News Bargaining Bill

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Abstract

This report examines Google's response to the Fair Digital News Bargaining Bill introduced to the New Zealand Parliament. Google has threatened to remove all links to New Zealand news content if the bill, which mirrors Australia's News Media Bargaining Code, is passed. The analysis explores whether this represents a genuine shift in Google's regional strategy or a tactical move to secure an exemption similar to its C$100 million annual deal in Canada.

Key Takeaways

Google has threatened to remove all links to New Zealand news content if the Fair Digital News Bargaining Bill passes into law.
The proposed NZ legislation is closely modeled on Australia's existing News Media Bargaining Code, targeting digital platform operators.
Google's opposition centers on the bill's 'tax' on linking and its vague exemption process, which it claims discourages investment.

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Frequently Asked Questions

Google established a clear valuation ceiling in Canada by agreeing to a C$100 million annual payment to the Canadian Journalism Collective. This figure is significantly lower than the initial revenue expectations held by local publishers and serves as the baseline for current negotiations in New Zealand.

The threat is backed by recent precedent; Meta successfully called the Canadian government's bluff in 2023 by removing all news links from its platforms. This move resulted in a dramatic decline in referral traffic for publishers while simultaneously leading to higher reported satisfaction among Facebook users.

The Fair Digital News Bargaining Bill, introduced on 30 August, is closely modeled on Australia's code and includes a controversial 'tax' on linking. Google views the bill's vague exemption process as a barrier to investment, prompting its threat to remove all New Zealand news content if the legislation passes in its current form.

NZ news bargaining debate signals trouble for ANZ regulators

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