What would happen to the millions of businesses who rely on and have paid Google for SEO & Adwords if the federal LNP government forces Google to shut down ?
Treasury deputy secretary Meghan Quinn told the inquiry the government was undertaking modelling around the potential impact of a Google exit from the search market, but could not say whether it had a contingency plan in the event it did leave.
The proposed code, deemed “unworkable” by Google and Facebook, will force the tech giants into binding commercial agreements to compensate Australian news providers for the value news content brings to their platforms, or risk steep fines of up to 10 per cent of their annual revenues.
Media companies such as Nine Entertainment Co, owner of this masthead, and News Corp are urging the government to pass the laws, arguing they are critical to ensuring the long-term future of local journalism.
Both Google and Facebook maintain they are willing to pay for news but want to do so through their respective licensing initiatives, Google Showcase and Facebook News, which have not yet launched in Australia.They argue the code in its current form exposes them to an unknowable financial risk.
Solstice Media and Private Media chair Eric Beecher told the inquiry he supported the concept that Google and Facebook should pay for news content but said their concerns should be given greater consideration because the code would be “meaningless” if they left the market.
He said the tech giants were being asked to comply with legislation where they had “no idea how much money will be involved”.
“It could be $10 million a year. It could be $100 million. It could be $1 billion. It could be $10 billion,” Mr Beecher said.
Private Media-owned news website Crikey is one of seven outlets that has already signed deals with Google to license their content through Showcase.
From Brisbane News
