Google compromise to solve German competition case
Google has made a proposal to close German competition authority’s investigation on how the company is using its service Google News Showcase. The authority’s head has made a statement meaning that also if publishers have agreed to get paid for contributing content to the News Showcase service, they can negotiate to get paid for Google using the publisher’s content in search results. Advertising in connection with search results is a huge part of Google’s revenues.
Andreas Mundt, President of the Bundeskartellamt: “Google has proposed measures to respond to our competition concerns relating to Google News Showcase. The company no longer plans to include Showcase content in the general search results. The conditions for participating in Google News Showcase are not intended to prevent publishers from enforcing their general ancillary copyright. Access to Google News Showcase is based on objective criteria.”
“We rely on the assessment of the market players affected to ensure that the measures proposed by Google are effective. In view of the wide variety of interests the publishers may have we are thus conducting broader consultations in the sector.”
Google has already changed some of the practices under examination and declared its willingness to address any remaining ambiguities and concerns by modifying the Showcase contracts and providing clarifying statements, the Bundeskartellamt said in a press release.
“In particular, Showcase contracts are to be clearly separated from the ongoing negotiations regarding other ancillary copyright payments between Google and the publishers or their collecting societies.”
Andreas Mundt: “Parallel to the Google News Showcase proceeding we are closely monitoring the negotiations on ancillary copyright fees.”
The Bundeskartellamt will now obtain statements on the measures proposed by Google in the Google News Showcase proceeding from the complainant collecting society Corint Media and a number of German press publishers.
In its Google News Showcase proceeding the Bundeskartellamt is examining three aspects.
(1.) Google had originally announced to integrate and accordingly present the service in Google’s general search function. The authority fears that this approach will result in Google self-preferencing its own services or impeding services offered by competing third parties.
(2.) The authority is examining whether the relevant contractual terms unreasonably disadvantage the participating publishers and, in particular, make it disproportionately difficult for them to enforce their general ancillary copyright when participating in Google News Showcase.
(3.) The authority is reviewing the conditions for access to Google’s News Showcase service, i.e. whether non-discriminatory access is ensured for publishers.
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