Google stays in Australia and ends deal with news agency

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The long fight between Google and the Australian government seems to be over: in a twist, the tech giant has signed an agreement with Seven West Media. The information was revealed by the news agency itself this week.

Seven West Media is the first media company to close a licensing agreement with the US company, and will provide content to the news aggregator News Showcase.

According to Reuters, Google also tried deals with Australian agencies News Corp and Nine Entertainment. However, the negotiations did not proceed because the proposals did not appear to benefit either party.

Apparently, the media companies hoped to be able to capitalize on the new Australian law that will levy a “tax” on news reporting, something that has been widely contested by the technology giant since the announcement.

In any case, Google’s recent move is seen as a serious blow to Microsoft. The company and the Australian government were negotiating well in advance and Bing was already appearing as a strong substitute for the competing search engine.

Fight history

In April 2020, the Australian government created a law that would force internet giants to pay media companies for broadcasting content. If approved, the proposal would directly reach Google’s platforms.

Since then, the American company has been confronting the authorities. In addition to publishing an open letter opposing regulation, a few months ago, she threatened to take the search engine out of the country.

Therefore, the recent agreement shows that Google has finally agreed to operate under the new regulations. In announcing the partnership with Seven West Media, the company said it was “proud to support original, reliable and quality journalism”.