Microsoft is ‘here for us’

Company calls Google’s bluff

MICROSOFT has called Google’s bluff in Australia, revealing plans to “invest further” in its local search engine in response to the latter’s threats to withdraw services from the country.

In a statement aimed at its trilliondollar rival, Microsoft also revealed its “full” support of Australia’s proposed news media bargaining laws, conceding it would be prepared to pay for news.

It added that “while other tech companies may sometimes threaten to leave Australia, Microsoft will never make such a threat”.

The software giant’s tough stance came after Microsoft chief executive Satya Nadella spoke with Scott Morrison and Communications Minister Paul Fletcher last week, and followed a threat from Google to withdraw its search engine from Australia to evade laws that would make it to pay local media outlets for the news it used on its platform.

The News Media and Digital Platforms Mandatory Bargaining Code, which would see Google and Facebook forced to negotiate with registered media outlets in Australia to share revenue gained from their use of news content, is being considered by a Senate committee.

Google Australia managing director Mel Silva said the company objected to elements of the proposed laws, including the terms for negotiation, and the company would prevent Australians from using the company’s search engine if the laws were passed.

Microsoft is keen to fill any void left by Google, with its US president, Brad Smith, issuing a statement in strong support of “the media sector and public interest journalism” and what he called the Australian Competition & Consumer Commission’s proposal for “world-first solutions”.

He said Microsoft “fully supports” Australia’s proposed news code, and was willing to share revenue if called to do so. Microsoft would also “invest further to ensure [its search engine] Bing is comparable to our competitors” and would ensure that small businesses could transfer digital advertising to the network without cost.