Google's Open Letter to Australians - What We Know So Far

The COVID-19 Virus has led people everywhere to be a little jumpier and a bit less trusting. Now, more than ever, we need to be calm and examine facts before reacting.

A perfect example of this is the recent uproar about Google’s open letter to Australians. There is plenty of information in the letter written by the Managing director of Google Australia, Mel Silva to grab your attention and cause a good deal of nervousness.

Likewise, the various responses from Australian watchdog groups and news outlets cause concerns about Google’s claims and how much truth is a part of the assertions in the letter.

Let’s take a better look at both sides of the story. To do this, we need to ask what is in the infamous open letter from Google?

The Open Letter From Google

While only a few paragraphs long, Google’s letter is brimming with the company’s views on the News media bargaining code.

• Speculation - The letter is peppered with plenty “could” and “might” phrases. While the search engine giant is carefully skirting around the edges of the truth with these comments, an average person who reads this will most likely have a sense of concern.
• Accusations - Google’s letter plainly states that Australian lawmakers crafted the law so that large media outlets get an unfair advantage against the smaller sized players.
• Worst Case Scenarios - As children, many of us heard phrases like ‘don’t play in the street a car will come and run over you’ or ‘get down from there you’re going to fall and break your neck’ Now, our mums were not lying to us, those possibilities existed. Parents handed out the worst possible outcome to drive our choices in a different, and safer, direction. While Google’s motives may not be so altruistic, their letter presents some of the worst possible outcomes of the news media bargaining code.

What Does This Mean for the Average Australian Google User?

In many ways, the answer to that question depends on whom you are asking.

• Google warns that the most prominent news conglomerates will have the most significant control over news and its presentation even if smaller organisations do a better job. Additionally, Google believes their free services will be in jeopardy because of fees extracted by larger news organisations.
• The Australian Competition and Consumer Commission (ACCC) contends that the bargaining code will level the playing field for news outlets and leave room for negotiating of payment for journalists' work included on Google services.

What is Google Saying?

In the letter to Australians, Google claims that the News Media Bargaining Code can disrupt how Aussies use Google search. While there are no definitive statements about what will happen upon enacting the code, Google asserts that they may need to charge for services.

Additionally, Google expresses concern over the fact that the search engine giant must hand over users’ personal information as a part of the negotiating process.

What is the ACCC Saying?

The ACCC strongly contends that Google’s open letter contains misinformation. The ACCC dispute centres around three claims from the search engine giant:

1. The fact that Google claims it will be forced to share user data is merely untrue.
2. Google’s statement about the necessity of charging customers is something that Google could choose to do. However, it is not compulsory.
3. The ACCC’s purpose behind the code is making sure that journalists’ are compensated adequately for their work.

Closing Considerations

Each side in this standoff has valid points that are worthy of examination. Likewise, in the arena of business, it is wise to consider what each side has to gain and lose in any transaction.

Can past actions be indicators of future behaviour? If so, we would do well to recall that when Spain created a similar law, Google’s response was to change search results and drop some news outlets. Actions like these make a case for the fact that Google’s letter is a way of frightening Aussies into applying pressure on the government, so Google can avoid paying for news.

The ACCC’s bargaining code is under scrutiny for being a biased way to silence voices and using Google to subsidise losses by other types of news media. Opponents also describe the code as serving large conglomerates, and some go so far as to use the term ‘racketeering’ in their assessments.

Eventually, both sides will have played all their cards. We can hope that Australians do not end up as the real losers in this conflict.