Google says its European ‘experiment’ shows news is worthless to its ad business
In November, Google said it would conduct a "test" in eight European countries that would omit results from EU-based news publishers for a small percentage of users. The results are in, and the survey says the news has no meaningful monetary value for the company. But the "public experiment" was hardly done for scientific curiosity. European copyright law says the company must pay publishers for using snippets from articles, and Google will likely use the data to try to kneecap news outlets' negotiating leverage.
"During our negotiations to comply with the European Copyright Directive (EUCD), we've seen a number of inaccurate reports that vastly overestimate the value of news content to Google," the company bluntly wrote in its blog post explaining the experiment's results. "The results have now come in: European news content in Search has no measurable impact on ad revenue for Google."
Google Economics Director Paul Liu said that when the company removed news content from one percent of users in Belgium, Croatia, Denmark, Greece, Italy, the Netherlands, Poland and Spain, it saw no change in ad revenue and only a 0.8 percent drop in usage. (It initially included France, but a court warned the company that it would break a previous agreement and face fines, so it backed out.) Liu concludes that "any lost usage was from queries that generated minimal or no revenue."
TechCrunch notes that Google is walking a fine line here. It's already faced antitrust fines in France over news content, and Germany is ratcheting up pressure on the company's news licensing tactics. Neither country was ultimately included in the "experiment."
The company has a long history of using the potential withdrawal of visibility as a negotiating stick in similar situations (with success in some cases), including tests in Canada, California and Australia. In the latter case, Aussie grit prevailed: After Google threatened to remove its entire search engine from the country, then-Prime Minister Scott Morrison said, "Let me be clear. Australia makes our rules for things you can do in Australia." The bill was passed and enacted, and Google struck deals with Australian media companies to license content. And yes, Google search is still available Down Under.
This article originally appeared on Engadget at https://www.engadget.com/big-tech/google-says-its-european-experiment-shows-news-is-worthless-to-its-ad-business-161103352.html?src=rss
In November, Google said it would conduct a "test" in eight European countries that would omit results from EU-based news publishers for a small percentage of users. The results are in, and the survey says the news has no meaningful monetary value for the company. But the "public experiment" was…
