TL; DR
Regulators are not done calling for corrective action from Google. Android headquarters noted that Google agreed to pay a fine of € 500 million (about $ 590 million) after the French competition authority (Autorité de la concurrence) found the search giant was not making deals for news content “in good faith” had negotiated with publishers.
Google has two months to come up with suggestions on how it will compensate publishers and face a fine of € 900,000 (approximately $ 1 million) per day for failure to comply.
The European Parliament changed copyright rules in March 2019 to require internet companies to obtain licenses from news publishers when they re-use snippets, for example for search results. France was the first to introduce the new system and in April 2020 ordered Google to negotiate with publishers over the next three months. According to Autorité President Isabelle de Silva, Google is threatened with a fine for allegedly violating the “letter and spirit” of this order.
Connected: Justice Department antitrust lawsuit against Google
Google allegedly “earned” the fine through multiple violations. It pushed companies to negotiate deals for the News Showcase (which wraps up stories as elaborate presentations) while foregoing search income. The tech pioneer also banned companies from demanding payment if their material appeared on other news sites.
Google was reluctant to pay for news. It argued that news agencies benefited from the influx of readers who came through search results. In Australia, where Google faced similar pressures, the company even argued that paying for news could threaten free services like YouTube.
Google said in a statement it was “obliged” to comply with the order, but believed the fine was “out of proportion” to the money it made from news. France ignored “substantial efforts” to get business, according to a spokesman. The company promised to review the order, with indications that it could appeal the decision.
The French fine is the latest in a long line of legal problems for Google. A coalition of US states sued the company a week earlier for alleged abuse of control of the Play Store, while other cases in the US and Europe tried to change the company’s approach to Android, advertising and search. The company even received a fine from Italy for allegedly abusing its power over Android Auto. Google may have no choice but to reconsider its behavior if it wants to avoid further legal ramifications.