Alphabet’s Google vs. Australian Government

Google is one of the most famous tech companies in the world and millions of people around the world are using its services and products on a daily basis. However, even for the tech giant, it is not always easy to deal with challenges.

The company made an important announcement on Friday. According to the information released by Google, it would block its search engine in Australia if the country’s government proceeds with a new code. As a reminder, this code would force the tech giant as well as another world-famous company Facebook to pay media companies for the right to use their content.

People should keep in mind that, Google’s threat escalates a battle with publishers such as News Corp. Millions of people are monitoring the situation to learn more about the conflict. It is worth mentioning that, the company warned that its 19 million users based in Australia would face degraded search. Also, it would be harder to use YouTube if the government proceeds with a new code.

Google and legal aspects

Interestingly, the country is expected to approve laws that would make tech giants negotiate payments with local publishers and broadcasters for content included in search results or news feeds. Importantly, if they fail to reach a deal, a government-appointed arbitrator will decide the price.

It is not surprising that Google’s comments attracted attention from the government. According to Australia’s Prime Minister Scott Morrison, the country makes its rules. It means every person or an organization must respect the country’s laws.

According to the tech giant, the code is too broad, and without revisions. The company claims that offering even a limited search tool would be risky. Interestingly, Google does not disclose sales from Australia. However, search ads are its biggest contributor to revenue and profit around the world.

Importantly, the U.S. government asked Australia to abandon the proposed laws, which have broad political support. According to the U.S. government, Australia should pursue a voluntary code instead.

As a reminder, the country’s government released the information about the legislation in December after an investigation found Google, as well as social media giant Facebook, held too much market power in the media industry. Based on the information provided by the government, it is a potential threat to a well-functioning democracy.

The country’s government should join forces with Google as well as Facebook to reach a deal as soon as possible.