19 April 2024

The Law Behind the Google News Shutdown

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Google's announcement that it plans to pull the plug on Google News in Spain in response to a restrictive copyright law there is the first time the U.S. tech giant has removed a local version of its news-aggregation service from any country. The law, which comes into effect in January, requires publishers to charge news aggregators for showing even small excerpts of articles alongside headlines and links. There is no opt-out; the “right to charge” can’t be waived — no publisher can simply give up its right in exchange for staying on Google News.

It gets even more complicated:  The law makes no specific provision for any punishment for publishers who don’t charge aggregators. But for news aggregators that don’t pay the obligatory charge, they could face fines of up to $744,000 for each infraction beginning with the second. Google has long said it isn’t willing to pay to display snippets, and that it believes its Google News service benefits publishers by driving traffic to their sites.

On Dec. 16, Google News Spain will no longer exist. All other Google News services will still be available for Web surfers in Spain, but no Spanish publisher’s content will be on them. In fact, no Spanish publisher’s content will appear on any Google News service world-wide.

The publishers’ articles, though, can still appear in the results of a general Google search in Spain or abroad. Social networks also won’t be affected, as the law only targets aggregators. Latin American versions of Google News and Spanish-language content from Latin America will be available to users in Spain.

Aggregators like Google will now have to choose whether to negotiate with publishers and the government to establish a set of rules. These talks, should they take place, will determine fees and rates that aggregators will be asked to pay for using content, depending on yet-to-be-agreed metrics that may include the length of citations as well as page views to publishers generated by the referrals. Even if Google doesn’t take part in this process, it would still be bound by the rules, should it revive Google News in Spain.

Spain’s media would be represented at the negotiations by the big newspaper lobby AEDE, which includes the owners of all the largest papers in the country, and is widely seen as the main force behind the bill. However, AEDE members wouldn’t be the only ones receiving fees. This number was calculated to include Google’s potential share. Smaller newspapers not represented by AEDE, as well as Web-only news sites, would also receive some of the money.

The collection of these fees would fall to CEDRO, a quasigovernmental organization that would then be in charge of dividing the proceedings among the news generators.

In Germany, a similar but less restrictive law was passed in October, but publishers had the option to opt in or out. Some of the publishers who opted to charge Google for displaying snippets of their content suffered a huge and immediate loss of Web traffic when Google instead removed their snippets. Within weeks, the publishers opted out, giving Google News a free license.

Click here to access the full article on The Wall Street Journal. 

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