Google's Other Bad Idea: Offering 50 Million Euros To French Newspapers [Updated]

from the is-that-really-wise? dept

Earlier this week we wrote about a strange move by Google: apparently agreeing to pay the French telecoms company Orange extra to deliver its traffic -- thus abandoning the principle of net neutrality it has championed for so long. And now here's another dubious decision: allegedly offering to pay French publishers 50 million Euros in order to settle the dispute over the display of news snippets in its search results:

According to the report, French publishers turned down the €50 million (USD $66.6 million) offer and demanded a figure of €70 to €100 million instead. They also objected to the way Google proposed to disburse the money. The company reportedly offered to spend a third of the €50 million in the form of direct ad purchases while using the rest for commercial advertising partnerships between Google and the publishers. The publishers reportedly complained that too much of the proposed money was contingent on sales figures.
This suggests that Google is trying to frame these payments as more of a partnership with the newspapers than an acquiescence to their demands. That's no surprise, because if it is seen to be paying a license to display copyright material in this case, the pressure to do the same elsewhere will inevitably increase. In fact, it has already adopted this "partnership" explanation for the deal it cut with Belgian publishers last month:
We have reached an agreement that ends all litigation and represents great news for both us and the newspapers. We continue to believe that our services respect newspaper copyrights and it is important to note that we are not paying the Belgian publishers or authors to include their content in our services. From now on, Google and Belgian French-language publishers will partner on a broad range of business initiatives
It remains to be seen whether publishers in France and around the world will be happy to "partner" in this way, or whether some will hold out for a formal recognition by Google that it is paying them for a license to display snippets from their publications. Let's hope not: it would be a truly awful precedent that would undermine not only Google's business model, but much of the Web as we know it.

Update: Right on cue, Eric Schmidt has just unveiled -- you guessed it -- a "partnership" with French publishers:

Today I announced with President Hollande of France two new initiatives to help stimulate innovation and increase revenues for French publishers. First, Google has agreed to create a €60 million Digital Publishing Innovation Fund to help support transformative digital publishing initiatives for French readers. Second, Google will deepen our partnership with French publishers to help increase their online revenues using our advertising technology.
So the price seems to have gone up slightly, from €50 million, to €60 million, plus unspecified amounts to "help increase" publishers' advertising revenue. But no mention of the dreaded "licensing" word in there, so maybe the French publishers blinked, and Google won this time. But expect the issue to come up again in other countries -- Germany, for example -- where Google might not be so lucky.

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Reader Comments (rss)

(Flattened / Threaded)

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    Ninja (profile), Feb 1st, 2013 @ 6:03am

    They need to fire their corporate strategy department....

     

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    Anonymous Coward, Feb 1st, 2013 @ 8:09am

    Google is developing a new business model modelled on the old tax farmers, that of advertiser revenue farmers. The money flow is public to companies to Google to newspapers, with Google taking its cut as the money passes through its hands.

     

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    identicon
    Anonymous Coward, Feb 1st, 2013 @ 8:24am

    Why doesn't google just say fine and block the publications from appearing in their search results? It really seems like the best way to shut them up is to give them what they want and let them figure out why they actually don't want that on their own.

     

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    Rikuo (profile), Feb 1st, 2013 @ 8:54am

    This is just another example of Mike Masnick being a Google shill, he writes nothing but praise for them and never says anything bad about them...
    Wait.
    *Actually reads Article*





    Shit.
    /sarcmarc

     

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      Suzanne Lainson (profile), Feb 1st, 2013 @ 10:13am

      Re:

      This is just another example of Mike Masnick being a Google shill, he writes nothing but praise for them and never says anything bad about them...
      Wait.
      *Actually reads Article*


      Actually the two recent Techdirt negative articles about Google weren't written by Mike. This one and the previous one were written by Glyn Moody.

       

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    identicon
    Anonymous Coward, Feb 1st, 2013 @ 9:45am

    Google seems to have jumped the shark this week.

     

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    identicon
    Anonymous Coward, Feb 1st, 2013 @ 10:02am

    Why are they doing this? Trust me the papers would cave if you removed them from the results.

     

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      identicon
      Anonymous Coward, Feb 1st, 2013 @ 11:08am

      Re:

      Better yet, Google should charge them a bill of 50 million for funneling people to their sites. Really disappointed with Google on this cowardice and hypocrisy cloaked in the veil of "strategy".

       

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    identicon
    Anonymous Coward, Feb 1st, 2013 @ 10:24am

    if Google has so much money that it feels it needs to give some away, i would be only too happy to help by taking some!

     

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    dennis deems (profile), Feb 1st, 2013 @ 12:11pm

    Surrendering from a position of dominance

    This reminds me of Obama's dealings with the Republicans: open by compromising your position, and close by agreeing to something that is nothing like what you wanted. What on earth could Google be gaining from this?

     

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    Ruben, Feb 1st, 2013 @ 1:20pm

    How long until every country starts to demand something similar?

     

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    Tex Arcana (profile), Feb 3rd, 2013 @ 11:31am

    Typical French arrogance: "You merican Google, we want millions from you, or we cut you off!"

    Google: Okay, fine, cut us off.

    Typical French arrogance: "American fool!! Now you must pay 12,125,000,000 francs if you want to continue operating in our country!" (despite French users clamoring for the French government to STFU).

    Google: Okay, fine, cut us off.

    Typical French arrogance: "Running Amurikin pig-dog, you must now pay only a billion francs, because we're getting desperate!"

    Google: Okay. (Google shows up at the office with a bag of french francs)

    Typical French arrogance: "Oh, nononononono...we said $50 million, not this worthless pittance, you uncultured idiot!"

    Google:....???

    What WILL they do??

    They SHOULD tell them to stuff it!

     

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