The Bundeskartellamt, Germany’s very active competition authority, isn’t letting the grass grow under new powers it gained this year to tackle big tech: The Federal Cartel Office (FCO) has just announced a third proceeding against Google.
The FCO’s latest competition probe looks very interesting as it’s targeting Google News Showcase — Google’s relatively recently launched product which curates a selection of third party publishers’ content to appear in story panels on Google News (and other Google properties), content for which the tech giant pays a licensing fee.
Google started cutting content licensing deals with publishers around the world for News Showcase last year, announcing a total pot of $1BN to fund the arrangements — with Germany one of the first markets where it inked deals.
However its motivation to pay publishers to licence their journalism is hardly pure.
It follows years of bitter accusations from media companies that Google is freeloading off their content. To which the tech giant routinely responded with stonewalling statements — saying it would never pay for content because that’s not how online aggregation works. It also tried to fob off the industry …read more
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