Google Fined $592M in France for Antitrust Breach

France Imposes €500 Million Fine on Google Over News Content Negotiations

France has levied a substantial fine of €500 million against Google, following findings of significant violations in its negotiation practices with publishers regarding the remuneration for the reuse of their content. This action stems from a pan-EU reform of digital copyright law, extending neighboring rights to news snippets.

The Scale of the Penalty

The fine represents over half of the $1 billion news licensing fund Google announced in October, intended for payments to news publishers “to create and curate high-quality content” for its platforms. This substantial amount underscores the seriousness of the breaches identified by French authorities.

Google’s Initial Approach and Concerns

Initially, Google’s response to the new regulations involved ceasing the display of content snippets alongside links in Google News within France. However, the French watchdog determined this action potentially constituted an abuse of its dominant market position.

Previous Agreements and Discrepancies

The current penalty significantly exceeds the amount Google had previously agreed to pay French publishers. Reports indicate a deal struck in February with 121 publishers totaled only $76 million over a three-year period.

The Authority’s Findings

France’s competition authority stated the €500 million sanction is a result of Google’s failure to comply with injunctions issued in April 2020. These injunctions mandated Google to negotiate in good faith with publishers for the use of their protected content.

Imposing ‘Showcase’ and Limiting Negotiations

The investigation revealed Google attempted to impose its global news licensing product, ‘Showcase’ (or Publisher Curated News), on publishers. It sought to incorporate the legal neighboring right as a secondary component without separate financial valuation.

Restricting Remuneration Scope

Google reportedly restricted the scope of remuneration discussions, asserting that only advertising revenue generated from Google Search pages displaying news content should be considered. This excluded income from other Google services and indirect revenue streams.

Exclusion of Press Agencies and Content

The authority also found Google “deliberately circumscribed” the law by excluding titles lacking a Political and General Information certificate. Furthermore, it sought to exclude press agencies from remuneration for their content used by third-party publishers.

Insufficient Information and Delays

Publishers voiced complaints that negotiations were not conducted in good faith and that Google withheld crucial information needed to assess fair payment terms. The Autorité de la Concurrence received complaints from SEPM, APIG, and AFP in August/September 2020, initiating the investigation.

Potential for Further Penalties

Google faces the possibility of additional fines, up to €900,000 per day, if it continues to violate the watchdog’s injunctions and fails to provide publishers with all required information within a two-month deadline.

Neutrality and Contractual Pressure

The investigation highlighted concerns regarding Google’s neutrality in presenting protected content. The Showcase service was found to incentivize publishers to accept its terms, potentially degrading exposure and remuneration for those who negotiated independently.

Leveraging Dominance and Additional Services

Google was also criticized for linking participation in the Showcase program to subscription to Subscribe with Google (SwG), potentially leveraging neighboring rights negotiations for financial gain in other services.

A “Deliberate Strategy of Non-Compliance”

The authority characterized Google’s actions as a “deliberate, elaborate and systematic strategy of non-compliance,” representing a continuation of its long-standing “opposition strategy” to neighboring rights.

Google’s Response

Google expressed disappointment with the decision, maintaining it acted in good faith throughout negotiations. The company stated the decision primarily relates to negotiations between May and September 2020 and highlighted ongoing engagement with publishers.

Ongoing Agreements and Future Plans

Google cited a January 2021 framework agreement with the Alliance de la Presse d’Information Générale and agreements with publications like Le Monde and Le Figaro as examples of its commitment. It also expressed confidence in reaching a global licensing agreement with Agence France Presse.

Previous Fines in France

This €500 million fine is not an isolated incident. Google has faced substantial penalties in France in recent years, including fines for adtech abuses, privacy violations, and opaque ad rules.

Global Implications and Regulatory Trends

Australia recently enacted a law requiring tech giants to negotiate with publishers for content reuse, potentially setting a precedent for other countries. The UK’s Competition and Markets Authority has also expressed interest in similar approaches.

The situation underscores the growing global scrutiny of tech platforms and the need to ensure a sustainable future for news businesses in the digital age.