The legislation could result in Google shutting down its search service in the country amid suggestions it could be replicated elsewhere
A move to address a power imbalance: The Australian Parliament will consider the bill for the News Media and Digital Platforms Mandatory Bargaining Code this week. The Australian Competition and Consumer Commission (ACCC) drafted it under direction of the Government, in response to its digital platforms inquiry of 2019. The Code will require Facebook and Google to remunerate news publishers for links and snippets that appear in searches.
Google could shut down its search service in Australia: Google has vocally opposed the proposal, saying it would have “no real choice but to stop making Google Search available in Australia”. It recently launched its News Showcase platform, showing news for which it has paid, in an effort to demonstrate that the mandatory code is not necessary. Similarly, Facebook threatened to stop Australian users from sharing news on its platforms.
Microsoft eyes an opportunity: Microsoft endorsed the Code and said its Bing search engine could give Australians the service they want and need. Microsoft said the legislation should be copied by legislators in the EU, the US, and elsewhere.