Australian media house strikes news deal with Google

Seven West Media, the largest Australian news media company, announced on Monday it entered into a licensing deal with Google ahead of the country's planned digital legislation.

In a statement, the company said Seven West Media signed a long-term partnership with Google to provide news content to the tech giant’s own model, News Showcase, which was launched in Australia earlier this month.

"The agreement will be subject to executing a long form agreement within the next 30 days," said Kerry Stokes, chairman of the media company, adding, “This is a great outcome for Seven West Media and for Google.”

“Their outstanding leadership on the implementation of the proposed News Media Bargaining Code has resulted in us being able to conclude negotiations that result in fair payment and ensure our digital future,” he said.

He thanked Prime Minister Scott Morrison and other officials for playing a key role in the outcome of the agreement.

Mel Silva, the managing director for Google Australia and New Zealand, welcomed the agreement and said Google supported “original, trusted, and quality journalism.”

“We are proud to support original, trusted, and quality journalism and are excited to welcome Seven West Media today as a major Australian publishing partner to join Google News Showcase," Silva said.

Seven West Media is one of Australia’s leading integrated media companies across broadcast, print, and digital news.

According to Google, since News Showcase was launched in October last year, pay deals have been signed with more than 450 publications worldwide.

In April last year, Australia unveiled plans to force tech giants to pay news outlets for their content.

Last month, Google threatened to withdraw its search engine from Australia over controversy with Canberra on proposed media law.

However, Australian Prime Minister Scott Morrison rejected Google’s threat and said: "Let me be clear, Australia makes our rules for things you can do in Australia. That's done in our Parliament."

Earlier, last September, Facebook also threatened to stop users from posting news content in Australia if the draft code became law.