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The proposed legislation is not supported by the minority government coalition partner ACT, but it may get enough support once finalized

Google will discontinue linking to New Zealand news and terminate its contracts with local news organizations if the government passes a law requiring tech giants to pay a fair price for content.

In July, the government of New Zealand announced its plans to move forward with the legislation initiated by the Labour Party government.

Proposed Law Ensures Fair Prices

The proposed law ensures fair distribution of prices between the operators of digital platforms and news media outlets.

The proposal is still in review and will bring changes to align it more closely with the laws in Australia.

"We’d be forced to stop linking to news content on Google Search, Google News or Discover surfaces in New Zealand and discontinue our current commercial agreements and ecosystem support with New Zealand news publishers,"  Google New Zealand Country Director, Caroline Rainsford said.

Google Concerned that the Proposed Law Could Affect Small Publishers

Google is concerned as the bill goes against the concept of the internet being accessible to all. The bill could affect the small publishers and then the uncapped financial exposure could lead to business uncertainty.

“We are still in the consultation phase and will make announcements in due course,” New Zealand Minister for Media and Communications Paul Goldsmith said in a statement.

Additionally, Paul Goldsmith said, “My officials and I have met with Google on several occasions to discuss their concerns, and will continue to do so.”

Proposed Legislation Not Supported by Minority Government Coalition

The legislation is not supported by the minority government coalition partner ACT, but it may get enough support once finalized.