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stc Group and Alibaba Establish Alibaba Cloud for Cloud Computing in Saudi Arabia

A general view of Riyadh on a rainy day. (SPA)
A general view of Riyadh on a rainy day. (SPA)
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stc Group and Alibaba Establish Alibaba Cloud for Cloud Computing in Saudi Arabia

A general view of Riyadh on a rainy day. (SPA)
A general view of Riyadh on a rainy day. (SPA)

stc Group, the leading national digital enabler announced the establishment of "Alibaba Cloud” in Riyadh, Saudi Arabia, for high-capacity cloud services in partnership with the Chinese technology giant, "Alibaba Group”, eWTP Arabia for Technical Innovation Ltd., the Saudi Company for Artificial Intelligence (SCAI), and the Saudi Information Technology Company (SITE).

The establishment of the new company in the Saudi capital, Riyadh, came in response to the significant increase in demand for cloud computing services and solutions in the region.

The company will provide advanced cloud computing services to companies operating in the Kingdom, ensuring that they employ the highest standards of security and protection.

The new company’s capital will amount to SAR 894 million, and the new company will benefit from the distinguished position of stc Group in the services and technology solutions sector and will employ the best talent and expertise to support the local capabilities of the Kingdom and enable it to enhance digital development and build an advanced ecosystem capable of meeting the future needs of the Kingdom.

Alibaba, one of the best providers of cloud computing services and solutions in the world, will offer a wide range of cloud computing services and solutions, a step that will enable local companies and institutions to digitize their businesses, employ the technologies of the Fourth Industrial Revolution, raise work standards and enhance businesses.

In line with the Kingdom’s efforts to enhance economic diversification and stimulate investment opportunities in the cloud computing sector, the new company will contribute to providing quality jobs, transferring knowledge and expertise to the Kingdom, and ensuring a safe work environment for entrepreneurs in the region.

stc’s investment with Alibaba for cloud computing services, in cloud computing solutions in Riyadh, reflects the company’s future vision and its great role in pushing digital transformation efforts in the Kingdom. It reflects its commitment to forging strong partnerships with leading technology companies around the world in line with Saudi Arabia’s Vision 2030 to attract foreign and international investments into the Kingdom, creating a secure environment for entrepreneurs, and enhancing information security by protecting data internally in the Kingdom.

The establishment of the company specialized in cloud computing services and solutions in Saudi Arabia will contribute to developing the Kingdom’s digital infrastructure and preparing it to provide the latest digital data storage services and solutions and ensure its protection and security, which will boost the country’s ability to provide cloud computing services to global companies.

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Google Says it Will Stop Linking to New Zealand News if Law Passes Forcing it to Pay for Content

The Google logo is seen on the Google house at CES 2024, an annual consumer electronics trade show, in Las Vegas, Nevada, US, January 10, 2024. (Reuters)
The Google logo is seen on the Google house at CES 2024, an annual consumer electronics trade show, in Las Vegas, Nevada, US, January 10, 2024. (Reuters)
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Google Says it Will Stop Linking to New Zealand News if Law Passes Forcing it to Pay for Content

The Google logo is seen on the Google house at CES 2024, an annual consumer electronics trade show, in Las Vegas, Nevada, US, January 10, 2024. (Reuters)
The Google logo is seen on the Google house at CES 2024, an annual consumer electronics trade show, in Las Vegas, Nevada, US, January 10, 2024. (Reuters)

Google said Friday it will stop linking to New Zealand news content and will reverse its support of local media outlets if the government passes a law forcing tech companies to pay for articles displayed on their platforms.

The vow to sever Google traffic to New Zealand news sites — made in a blog post by the search giant on Friday — echoes strategies the firm deployed as Australia and Canada prepared to enact similar laws in recent years.

It followed a surprise announcement by New Zealand’s government in July that lawmakers would advance a bill forcing tech platforms to strike deals for sharing revenue generated from news content with the media outlets producing it.

The government, led by center-right National, had opposed the law in 2023 when introduced by the previous administration.

But the loss of more than 200 newsroom jobs earlier this year — in a national media industry that totaled 1,600 reporters at the 2018 census and has likely shrunk since — prompted the current government to reconsider forcing tech companies to pay publishers for displaying content.

The law aims to stanch the flow offshore of advertising revenue derived from New Zealand news products.

Google New Zealand Country Director Caroline Rainsford wrote Friday that the firm would change its involvement in the country’s media landscape if it passed.

“Specifically, we’d be forced to stop linking to news content on Google Search, Google News, or Discover surfaces in New Zealand and discontinue our current commercial agreements and ecosystem support with New Zealand news publishers,” she wrote.

Google’s licensing program in New Zealand contributed “millions of dollars per year to almost 50 local publications,” she added.

The News Publishers’ Association, a New Zealand sector group, said in a written statement Friday that Google’s pledge amounted to “threats” and reflected “the kind of pressure that it has been applying” to the government and news outlets, Public Affairs Director Andrew Holden said.

The government “should be able to make laws to strengthen democracy in this country without being subjected to this kind of corporate bullying,” he said.

Australia was the first country to attempt to force tech firms — including Google and Meta — to the bargaining table with news outlets through a law passed in 2021. At first, the tech giants imposed news blackouts for Australians on their platforms, but both eventually somewhat relented, striking deals reportedly worth 200 million Australian dollars ($137 million) a year, paid to Australian outlets for use of their content.

But Belinda Barnet, a media expert at Swinburne University in Melbourne, said Meta has refused to renew its contracts with Australian news media while Google is renegotiating its initial agreements.

As Canada prepared to pass similar digital news bargaining laws in 2023, Google and Meta again vowed to cease their support for the country’s media. Last November, however, Google promised to contribute 100 million Canadian dollars ($74 million) — indexed to inflation — in financial support annually for news businesses across the country.

Colin Peacock, an analyst who hosts the Mediawatch program on RNZ, New Zealand’s public radio broadcaster, said Google “doesn’t want headlines around the world that say another country has pushed back” by enacting such a law.

While Google pointed Friday to its support of local outlets, Peacock said one of its funding recipients – the publisher of a small newspaper – had told a parliamentary committee this year that the amount he received was “a pittance” and not enough to hire a single graduate reporter.

Minister for Media and Communications Paul Goldsmith told The Associated Press in a written statement on Friday that he was still consulting on the next version of the bill.

“My officials and I have met with Google on a number of occasions to discuss their concerns, and will continue to do so,” he said.

Goldsmith said in July that he planned to pass the law by the end of the year.