Media Minister Paul Goldsmith faces a huge test of will as he oversees a new law in the face of strident opposition from one of the world’s biggest tech companies. Some industry and Government insiders accuse Google of employing bullying tactics. Shayne Currie reports.
Tech giant Google – whose New Zealand operation made almost $1 billion last financial year – has been accused of employing hardball tactics with the Government and media companies over a planned new law which would force it to pay for the journalism and news content that help drive its business model.
Several sources have alleged Google’s tactics include threatening to not renew existing contracts with media companies, while the new law goes through Parliament.
One source said the tactics were tantamount to bullying. “They’re playing their usual games, being as obnoxious as they can be.”
First of all the statement that journalism and news content help drive their business model is an assertion made by media companies, but is far from a fact. An article here points out less than 2% of searches new news related, and most of them don’t have ads on them. Media of course have the choice of setting their content not to be useable by Google. However none of them have done so – presumably because they benefit from doing so.
Secondly who is the bully. The organisations trying to force a company to hand over money to keep them happy, or the company saying it doesn’t want to hand over money?
The media are the bullies – trying to get the government to pass a law to steal money from Internet companies and pass ist on to them.
David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders.
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