Google ‘a bully using scare tactics’ to head off regulation

Google has been told to ‘stop the scare tactics’ and negotiate a fair agreement with media companies.

Centre for Responsible Technology director Peter Lewis.

Google has been told to “stop the scare tactics” and negotiate a fair agreement with media companies, with the tech giant accused of spreading fear in an attempt to ward off regulation.

The call came in an open letter from the Australia Institute’s Centre for Responsible Technology and followed a decision by the search giant, first reported by The Australian, to ask users of Google and YouTube to lobby Australia’s competition watchdog.

The new regulations would force Google and Facebook to negotiate with media companies and pay for the journalism they currently use for free.

“Google’s response to the ACCC’s attempt to level the playing field and support quality Australian media underlines exactly why the ACCC code is fundamental to a robust media landscape in Australia,” Peter Lewis, director of the Centre for Responsible Technology, said.

“Not only has Google used its immense power and reach to ­directly message Australian users with an attack on the ACCC process, it has misrepresented key facts in a way that appears ­designed to spread fear.”

The letter says the impact of Google’s business model on Australia’s media and national life has been “disastrous”.

“You have exploited your understanding of our personal interests and behaviours to draw advertisers away from traditional media, destroying the business model that supported independent journalism for more than 150 years,” the letter reads.

“In the past decade more than 5000 Australian journalists have lost their jobs as your share of ­advertising has grown and grown. You have also been happy to use stories written by those journalists as if they were your own work, ­deriving value from something that isn’t yours.

“Australians embrace innovators, but we don’t like bullies. If you want our ongoing support, we encourage you to make it mutual and reach a fair arrangement.”

On Monday Google managing director Mel Silva posted an open letter addressed to all Australians, foreshadowing that news companies would make “enormous and unreasonable demands” that would put the future of Google Search and YouTube at risk. “You’ve always relied on Google Search and YouTube to show you what’s most relevant and helpful. We could no longer guarantee that under this law,” she said.

“We’re going to do everything we possibly can to get this proposal changed so we can protect how Search and YouTube work for you in Australia.”