Google Appeals French Copyright Fine - Disproportionate Ruling

Google Challenges €592 Million Fine from French Authority

Google is currently contesting a substantial fine exceeding half a billion dollars levied by France's competition authority in July. This action initiates a formal challenge to the penalty.

Dispute Over News Publisher Compensation

The financial penalty stems from concerns regarding Google’s methods for compensating news publishers for the utilization of their content. The core issue revolves around fair remuneration for content reuse.

Google's Response and Claim of Disproportionate Penalty

Sebastien Missoffe, a Google France VP and country manager, released a statement describing the fine as “disproportionate.” He asserts that the €592 million penalty isn't justified given Google’s purported “efforts” to negotiate with news publishers and adhere to updated copyright regulations.

Missoffe further explained, “We are appealing the French Competition Authority’s decision which relates to our negotiations between April and August 2020. We disagree with a number of legal elements, and believe that the fine is disproportionate to our efforts to reach an agreement and comply with the new law.”

He added, “Irrespective of this, we recognize neighboring rights and we continue to work hard to resolve this case and put deals in place. This includes expanding offers to 1,200 publishers, clarifying aspects of our contracts, and we are sharing more data as requested by the French Competition Authority in their July Decision.”

Background: EU Copyright Updates

In 2019, the European Union enacted updates to digital copyright laws. These revisions extended copyright protection to the introductory portions – or ledes – of news articles. Previously, aggregators like Google News routinely used these snippets.

National Implementation and France's Leading Role

Following the EU-wide agreement, individual Member States were tasked with incorporating these updated rules into their national legal frameworks. France was among the first to implement these changes.

French Watchdog's Enforcement Actions

The French competition watchdog has been actively enforcing these updated regulations against Google. Last year, it mandated negotiations between Google and publishers. Subsequently, a significant fine was imposed following publisher complaints about Google’s conduct during these discussions.

Autorité de la Concurrence's Accusations

The Autorité de la Concurrence accused Google of attempting to impose a standardized, global news licensing product on local publishers. This was allegedly done to circumvent the legal obligation to individually assess and financially value neighboring rights remuneration, as required by both EU and French law.

Complexity of the Grievances

The watchdog’s detailed list of objections to Google’s modus operandi is extensive. It’s uncertain whether Google’s appeal is a preliminary step or a comprehensive challenge to the ruling.

Appeal Won't Halt Penalty or Timeline

According to Reuters, the Autorité has stated that the appeal will not suspend the penalty or alter the established timeline. Google was given a two-month period, starting in mid-July, to revise its offer and provide publishers with all necessary information.

Failure to comply within this timeframe could result in daily fines of €900,000. With only a few weeks remaining, the deadline is rapidly approaching.

Strategic Timing of the Appeal

Google’s decision to announce the appeal at this juncture may be a strategic maneuver. It could aim to encourage publishers to accept a revised offer. The company highlights an ‘expanded’ offer – now encompassing 1,200 publishers – and mentions “clarifying aspects of our contracts” and “sharing more data.” These are areas where Google faced criticism from the Autorité.