Google retracts its threat to leave after Scott Morrison meeting

The search giant’s apparent change in tune comes amid a meeting with Scott Morrison, who refuses to buckle on media reforms.

Google CEO Sundar Pichai met Scott Morrison on Thursday. Picture: AFP

Google has backed down from its threats to leave the country if it has to pay news organisations for content, with Scott Morrison saying the tech giant is in a “more positive space” about its Australian future after a meeting with the search engine’s global chief.

The Prime Minister met ­Alphabet chief executive Sundar Pichai, the leader of Google’s parent firm, to discuss the proposed media bargaining code, which has led the search engine to threaten a boycott of Australia in the past month.

The code, which followed a competition regulator inquiry and is backed by the country’s largest news organisations including News Corp and Nine Entertainment, would force Google and Facebook to negotiate over payment for content.

Mr Morrison said on Thursday he made it clear to Mr Pichai that he would not back down on the media reforms, and Google would be best to negotiate with local news companies.

“It was a constructive meeting. I have been able to send them the best possible signals that should give them a great encouragement to engage with the process and see them conclude with the various news organisations,” he said in Canberra.

“That is the best way to enable that matter to be settled. We discussed some of the specifics of ­elements of the code. They raised those matters, I think, very respectfully. We have been able to get that into a much more positive space about the ability to continue to provide services here in Australia. At the end of the day, they understand Australia sets the rules for how these things operate.”

A Google spokesman described the meeting as “constructive” and the company would continue to meet on a workable solution to the news media bargaining code.

Google in recent days has ­watered down its position on the news media bargaining code, ­declaring that its threats to shut down its search engine in Australia had been misrepresented. “Many media outlets reported we have ‘threatened’ to leave Australia,” the company said in a blog post on its website.

“No longer making Search available is the last thing we want to have happen.

“As we told senators, we’re willing to pay publishers for value. We don’t object to a mandatory News Media Bargaining Code, and we believe there’s a clear path to make this code work for everyone.”

The Australian revealed on Wednesday that Microsoft has committed to step up investment in Australia in a bid for its search engine, Bing, to replace Google should it shut down search.