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German Publishers Go After Google; Apparently Very Confused About How The Internet Works

from the welcome-to-online dept

It looks like Germany may be a new front in clueless attacks on Google. With newspapers and magazines admitting that they're too clueless to know what to do with traffic Google sends them, officials in Germany are opening an antitrust investigation into Google based on some of the most ridiculous logic we've heard to date:
Hans-Joachim Fuhrmann, a spokesman for the German Newspaper Publishers Association, said the Web sites of all German newspapers and magazines together made 100 million euros, or $143 million, in ad revenue, while Google generated 1.2 billion euros from search advertising in Germany.

"Google says it brings us traffic, but the problem is that Google earns billions, and we earn nothing," Mr. Fuhrmann said.
Okay. Let's pick apart this apples and oranges comparison. First off, Google earns 1.2 billion euros from search advertising which has almost nothing to do with news. It comes from people searching for cameras or cribs or cars. Google News had no advertising at all for most of its existence and only introduced ads in the US less than a year ago. In other words, no, Google is not making more than newspapers and magazines when it comes to its News site in Germany.

And, even if Google was making more money (which, again, there's no evidence that this is true), that still doesn't excuse Fuhrmann's claims -- which basically amount to him admitting that Google figured out how to make money and the companies he represents did not. Yet the publishers he represents had all of the advantages in the world. They were local. Google was not. They had been around for many more years than Google. They had brand recognition and loyalty that Google did not. Furhmann is basically admitting what a colossal failure the companies he represents have been. They failed to capitalize on a huge opportunity. And now, when Google sends them traffic, they are still failing to use that traffic wisely. And then they blame Google for it? Wow.
The publishers also complained about what they saw as a lack of transparency in the way Google presents search results and news snippets in its Google News service, saying the company was manipulating the results to help maintain its strong position....

"We often feel like Web sites are elevated in Google's search results if they have a strong business relationship with Google, and we think we can prove it," Mr. Fuhrmann said.
So go ahead and prove it. First of all, Google is a private company and can rank sites however it wants. It's an opinion of what Google feels is most relevant. If Google was not doing a good job, then people would go away. So basically, at this point, Fuhrmann hasn't just admitted that the publishers he represents have failed miserably to set up even the most basic business models for adapting to the internet, he's now suggesting that Google is purposely handicapping its own site by not presenting the absolute best results!

It's difficult to see how this makes any sense at all. The publishers are claiming that Google is purposely degrading its results (and they can prove it!) and at the same time complaining that they can't compete against those degraded results. Wow.

On top of all that, the article reminds us, as we discussed last year, that these publishers have convinced German Chancellor Angela Merkel to support a new copyright law that would force aggregators to pay up just to link to stories. It's as if Germany doesn't want the internet at all.

Filed Under: business models, germany, internet, newspapers, publishers
Companies: google


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  1. identicon
    dennis parrott, 19 Jan 2010 @ 3:46pm

    You get an "F" for "Fail"...

    @F├╝hrermann (#9):

    Please pick up some REAL history books because you do not understand anything at all about Hitler's rise to power, how it came about, how it snuck up on the people, who backed him, who made billions off of him, etc. Your total lack of knowledge places you on the list of "historically challenged" (a PC way of saying "retard").

    However, Dark Helmet (#7) gets it completely. There are elites around the globe who want to try to put the Internet genie back in the proverbial bottle. It is WAY TOO THREATENING to their stranglehold on culture and perverse version of consensus reality. What these people, governments, corporations are trying to do is nothing short of global fascism and having people with free opinions threaten that consensus reality. Threatening that reality threatens their profit streams. Old media was a large part of enforcing that consensus reality on everyone. (Aside: just who gets to decide what that consensus should be? Hmmm...)

    I've wondered what it is they are all trying to hide that they need to cover it up and grind the world into conformity rather than just sell something different...

    I suspect that Google will school them on how they got that $143 million somewhere along the line. Perhaps all the search companies should just tell all of the "old media" to politely get lost -- we are no longer going to have you in our search results PERIOD and see how that goes down...

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