Google withdrawing its search engine from Australia will create a devastating situation for small and medium-sized businesses it has been revealed.

According to analysis produced by IBISWorld, if Google removes itself from Australia, it will create a massive economic problem. The pandemic was very challenging for all businesses globally, but when people start looking for a fresh start, Google’s exit will again mess up recovery plans. Small businesses like, coffee shops, holiday homes, beauty salons, restaurants, etc., who depend so much on Google search, will face closure if the search giant pulls out of the Australian market.

Liam Harrison, a senior analyst from IBISWorld, said: “Google’s exit would disrupt numerous Australian industries, which are already in a weakened state due to the Covid-19 pandemic.” According to the industry analyst, the hospitality industry is still struggling to come back after Covid-19. If Google confirms its withdrawal, Australia will be moving backwards. Adding to this, Harrison said that “Businesses and individuals widely use Google Maps and Search, and without those features, it will be difficult for customers to get connected.”

He continued “Eventually, this step will lead to an abundance of medium and small firms’ economic death”. The restaurant industry in Australia during 2019 generated $18.5 billion in revenue, but this dropped by 15% in 2020. However, in 2021 revenues are expected to rise by 5% if everything goes well with the vaccine rollout. In such a situation, the withdrawal from Google will again impact revenues. Similarly, sales in coffee shops dropped by almost 15% in the last year another sector heavily reliant on Google searches from consumers.

Google’s exit will also impact the Gig economy with online delivery app-based companies like Menulog or Uber Eats heavily reliant on the search giants software. Even if online ordering platforms work independently, it will certainly be harder to reach customers. The tourism sector is also hugely dependent on Google, and if it were to exit Australia, it would put them at serious risk of collapse.

Similarly, the beauty service industry, which has experienced a revenue drop of 14.4% in the last financial year, will also suffer greatly. Many industries have been impacted badly, due to the pandemic and Google closing off their search engine will be another major blow to Australians. Of course there would be opportunities for other search engines such as Bing or Yahoo, but it will be interesting to see how they perform against the market leader.