Google Fined €250m in France
Introduction
On Wednesday the 20th of March, Google was fined €250m (£214m) by the French Competition Authority (FCA). The FCA declared Google “failed to adhere to” an agreement on paying media companies when using their content on its platforms, linked to previous negotiations between the FCA and Google.
Background
Following the findings of Accuracy, an independent consultancy firm appointed as a watchdog over Google’s negotiations with the media, the FCA was encouraged to take further action. Subsequently, the agency launched an investigation in the autumn of 2023 by sending numerous questionnaires to Google and the media in relation to the relevant negotiations; eventually reaching conclusions against Google.
Most importantly, the French authority contested the presence of ‘good faith’ in negotiations with news publishers. It stipulated that Google failed to comply with the EU’s legal framework which aims to establish “necessary conditions for balanced negotiations between press agencies, publishers and digital platforms”. They also attributed the breaches to Gemini, Google’s AI service, which was trained on content from publishers and news agencies without notifying them, once again contrary to the EU’s regulatory framework.
The most recent developments mark a fourth fine against Google for failing to comply with EU Intellectual Property and Competition legislation and is the second largest penalty imposed by the FCA against the company.
Regulation and the fine
France’s decision is based on the EU’s new means of copyright protection through ‘neighbouring rights’ which allow media platforms to demand compensation for using their content online. These arrangements mean that tech companies, such as Google, have to provide media groups with an offer of payment within three months of receiving a copyright complaint by watchdogs or media platforms themselves.
In 2019, France was the first EU country to enact the ‘neighbouring rights’ directive. Since, there has been some resistance by large tech companies. However, after an initial display of opposition towards the new rules, Google and Facebook agreed to pay French media firms for articles shown on their web searches.
Despite this, Google has seen numerous violations of the directive. On the 20th of March, Google was found in breach of four out of the seven commitments agreed in the 2022 settlement, which included conducting negotiations with publishers in good faith and providing transparent information. It is said that Google hindered the publishers’ ability to negotiate remuneration by not providing a way for platforms to object to the use of their content. Google was also found to delay the disclosure of details regarding compensation measures by failing to update contacts and attempting to influence the behaviour of appointed mediators.
In a statement, Google said it settled and paid the fine as it was “time to move on”. At the same time, it described the fine as “disproportionate” to the issues raised by the FCA and recognised that the agency should be more considerate of the efforts they have been taking to resolve such issues, especially in an environment where they “can’t predict which way the wind will blow next”.
Conclusion
The ongoing dispute between Google, the FCA and news publishers underscores the broader issue of fair compensation for content creators. Despite Google's efforts to settle and collaborate with publishers, criticisms of hindering negotiation processes persist. This conflict is part of a larger movement to hold tech giants accountable for their role in profiting from news content without adequately compensating those who produce it. With regulatory bodies in the European Union scrutinising these practices, the outcomes of these disputes are set to shape the future landscape of online publishing and the fair distribution of revenue among content creators.
By Adham Shaker