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Home Markets

Out goes Google, in comes Microsoft?

Editorial by Editorial
01/02/2021
in Markets
June 8, 2019 Mountain View / CA / USA - Google office building in the Company's campus in Silicon Valley; The "double o's" of the logo are decorated in rainbow colors in honor of LGBTQ Rights

June 8, 2019 Mountain View / CA / USA - Google office building in the Company's campus in Silicon Valley; The "double o's" of the logo are decorated in rainbow colors in honor of LGBTQ Rights

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Recently, Internet giant Google and social media big boy Facebook said they would withdraw key services from Australia if the government fails to back down from the new media law. Those services include Google’s search engine, which has 94% of the country’s search market, according to industry data.

Australia has introduced laws that would force Google and Facebook to negotiate payments to domestic media outlets whose content links drive traffic to their platforms.

However, Software giant Microsoft Corp is confident its search product Bing can fill the gap in Australia if Google pulls its search over required payments to media outlets, according to Prime Minister Scott Morrison. The software company was ready to grow the presence of its search tool Bing, the distant No. 2 player.

The tech company also mentioned in a statement that its CEO Satya Nadella has since spoken with the Australian prime minister about the new rules.

“We just want the rules in the digital world to be the same that exist in the real world, in the physical world,” Morrison said in a statement.

Also according to a Microsoft spokeswoman, the discussion did take place but declined to comment, because the company was not directly involved in the laws. However, they recognise the importance of a vibrant media sector and public interest journalism in a democracy and the challenges the media sector has faced over many years through changing business models and consumer preferences.

A Google representative was not immediately available for comment.

In another note, Facebook Inc CEO Mark Zuckerberg called on Australian lawmakers to discuss rules that would make Internet giants pay news outlets for content but failed to persuade them to change policy, according to the Australia’s Treasurer, Josh Frydenberg.

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