‘Sobering power’: Warning over big tech power

Chairman Mao ‘would have approved’ of Google and Facebook’s threat to cut off its customers, a high-profile inquiry has heard.

Google is prepared to “kill one to warn a hundred” after threatening to withdraw services from Australia, a senate inquiry has heard.

Treasury and Communications Department officials will front a committee on the government’s proposed media reforms on Monday, as it sits for the second and final day.

The federal government has stood firm in its push to force social media giants to pay for news content, despite an angry backlash from Facebook and Google.

Google threatened to remove its search engine from Australia users at the inquiry last month, and has launched a massive public relations campaign to criticise the proposal.

RELATED:  ‘Blackmail’: Google to ‘punish all of Australia’ over big tech proposal

Google has threatened to remove its search engine from Australian users. Picture: Kenzo Tribouillard/AFP

‘MAO WOULD HAVE APPROVED’: GOOGLE THREATS SLAMMED

Peter Lewis, Director of The Australian Institute’s Centre for Responsible Technology, said the threat should “send a chill to all those who value democracy”.

“Right now Australia is being confronted with big tech’s big stick: the threat to kill one in order to warn a hundred. Chairman Mao would have approved,” he said.

But he warned Australian governments and businesses had exposed themselves by relying heavily on apps such as Gmail and Google Maps.

“Just as we’ve determined a partnership with Huawei is not in our national interest, maybe it’s not in our national interest to be so reliant on Google moving forward,” he said.

Prime Minister Scott Morrison insisted at the National Press Club on Monday he would “set the rules that are right for our people”.

He joked Microsoft was “pretty confident” of filling any void left by Google.

Facebook also reiterated a threat to prevent Australians from posting and accessing news content at the inquiry last month.

But Mr Lewis said that without verified news, it would become a platform solely for “cute cats and conspiracy theories”.

Mark Zuckerberg has lobbied the Australian government directly over the proposal. Picture: Mandel Ngan/AFP

Josh Frydenberg says he won’t back down over the laws. Picture: NCA NewsWire/David Crosling

‘SOBERING POWER’: WARNING OVER BIG TECH’S INFLUENCE

Matt Nyugen from Reset Australia – an initiative designed to “counter digital threats to democracy” – said the threats showed the “sobering power” wielded by tech giants.

“They have actively used the monopoly control over information markets to try and influence Australian opinion,” he said.

“It reveals an entrenched disregard for community welfare and threatens to undermine Australia’s public decision making processes.”

Australians would be forced to find an alternative for the 95 per cent of searches conducted via Google if the company carried out its threat.

Reset Australia’s Chris Cooper said the threat would likely prove “empty” given the value of the Australian market.

“They know ... there are plenty of other search engines,” he said.

“So it’s not an ideal scenario, and we shouldn’t take it. But I do think that it’s largely an empty threat.”

‘MAKE OR BREAK’: TRADITIONAL MEDIA TOLD TO ADAPT

The bill would establish an independent umpire to choose determine how much would be paid for news content, if the parties could not strike a separate deal.

Dr Bronwyn Kelly, founder of the Australian Future Planning, said the reforms marked a “turning point” for Australian democracy.

“We can make it or break it with the legislative decisions made here,” she told the committee.

Country Press Australia has called for the ABC’s inclusion in the code to be reconsidered. Picture: NCA NewsWire / Joel Carrett

But she warned the discussion had become simply “an attempt to solve the problems of some big private news businesses” struggling to adapt to the digital age.

Dr Kelly said non-digital businesses had a “choice wide open to them” to create a more sustainable business model, with Google granting them access to a wider audience than they previously had.

‘DAVID AND GOLIATH’: REGIONAL NEWS UNDER THREAT

An interim report from the Australian Competition and Consumer Commission (ACCC) last week found Google held “remarkable dominance” over advertising technology.

Bruce Ellen, from Country Press Australia, warned the survival of regional outlets depended on advertising revenue now dominated by major tech giants.

But he said public debate was skewed towards major media outlets, painted as minor players in a stoush with international conglomerates.

Google’s Mel Silva made the threat at the last sitting of the inquiry. Picture: NCA NewsWire/Gary Ramage

“In our instance, it truly is a David and Goliath battle,” he said.

Mr Ellen also called for the government to reconsider its inclusion of the ABC in the code, arguing the broadcaster was muscling in on the “hyper local” news market.

‘NO BACKING DOWN’: ZUCKERBERG STEPS IN

Treasurer Josh Frydenberg confirmed on Sunday that Facebook chief executive officer Mark Zuckerberg had lobbied the government directly over the laws.

Mr Zuckerberg held conversations with the Treasurer and Communications Minister Paul Fletcher last week, but failed to persuade them to reconsider the proposal.

“Mark Zuckerberg didn’t convince me to back down,” Mr Frydenberg told the ABC’s Insiders on Sunday.