Google, the titan of our digital age, is regarded as the “Great Evil” by many in digital publishing because Google Ads hoovers up advertising revenue while in Europe, competition commissars announced this month that they would look into Google Shopping. Meanwhile, German publishers have expressed their disapproval over the way their news is displayed on Google News. It is very interesting to see in this DPA story then that Google has been moved to inject money into media outlets. It certainly suggest that the company is worried about a widespread pushback – even if it amounts to nothing more than bad PR – against its dominance of the digital economy. – Gill Moodie
From DPA
Google plans to invest $163 million to improve its strained relations with European publishing houses and is already seeing support from some respected newspapers.
The money, to be disbursed during the next three years, is to go to promoting digital journalism, Google on Tuesday.
Eight media outlets are involved so far: Germany’s Frankfurter Allgemeine Zeitung and Die Zeit newspapers, Britain’s Guardian and Financial Times, Spain’s El Pais, France’s Les Echo, Italy’s La Stampa and the Dutch publisher NRC. Three international journalism
associations are also taking part.
Google also plans a working group called the Digital News Initiative to speak to media representatives directly. Their thoughts could lead to the US-based internet giant changing its own products, such as its Google News portal.
Google said the initiative is open to other media and said any media could apply for the innovation funds, including pure online media and startups.
The announcement was made after the European Union this month issued a preliminary assessment that Google Shopping violates EU competition laws.
The EU investigation has focused on concerns that Google is giving its specialized services – such as Google Maps, Google Shopping and Google Places – favourable treatment in the way it displays online search results, thereby hampering user choices in a market where it is used for 90 per cent of general internet searches.
Before the announcement of the project, Google and European publishing groups have expressed criticism of one another. Disputes have broken out in several European countries about how the publishers’ content is displayed on Google News and in Google searches.
Many publishers in Germany, for example, have struggled over when Google should pay them for snippets of their articles that appear on Google News. The Frankfurter Allgemeine Zeitung and Die Zeit are not taking part in the action against Google by VG Media.
Other media groups spoke Tuesday of a “pact” between Google and the publishers taking part in its media initiative.
Zeit chief Rainer Esser said his weekly newspaper hopes for a closer exchange with Google over the effects of the digitalisation of the news industry.
“Google will work hand in hand with news publishers and journalism organisations to help develop more sustainable models for news,” said Carlo D’Asaro Biondo, president of strategic relationships for Google in Europe. – DPA
