Google claims that news is insignificant to its advertising business following a test involving 1% of search results in eight EU markets

Google's test suggests news is insignificant to its ad business.

: Google tested removing news from search results, affecting 1% of users in eight EU markets over 2.5 months, claiming its ad business isn't impacted by news. This occurs as EU copyright laws demand payment to publishers. Past fines and scrutiny in France and Germany over similar issues put Google in a cautious stance. The company excluded France and Germany based on legal advisories.

Google recently conducted a controlled experiment across eight European markets, including Belgium, Croatia, Denmark, Greece, Italy, Netherlands, Poland, and Spain. This test involved removing news content from search results for about 1% of users over a duration of 2.5 months. Google declared the findings suggest that news is significantly less valuable to their advertising business than what publishers estimate. In fact, Google claims the data indicated that the impact could statistically be interpreted as 'zero', bringing into question the financial obligations imposed by European copyright law.

The intention behind the test aligns with the recent EU copyright regulations which require tech companies to remunerate news outlets for utilizing snippets of their content. However, Google contends that news publishers may exaggerate the degree of this financial gain. According to Google’s interpretation of the test results, the profitability brought forth by displaying such news content is negligible, providing them with a potential bargaining chip in negotiations.

This disclosure from Google arrives amid its previous entanglements with legal issues concerning news content in Europe, particularly in France and Germany. France's regulatory body previously inflicted a substantial fine exceeding half a billion dollars on Google for its approach to copyright negotiations, without adequately addressing the publishers’ rights. In Germany, similarly, Google found itself under the magnifying glass of local competition authorities, compelling it to modify its operational strategies concerning news dissemination.

Interestingly, Google initially included French users in this experiment; however, following a judicial warning from France threatening punitive measures for defying an existing court arrangement, the company had to retract from involving French users. This prudent move was likely influenced by Google's hefty financial penalties already encountered within the region, thus opting to avoid further legal entanglements.

In the broader landscape, tech and legal observers are closely watching Google's maneuvers which appear to strategically position its narrative against the burgeoning regulatory frameworks concerning copyright. As Google ventures through these choppy legal waters, European authorities remain vigilant, ensuring Google's compliance while navigating their press-centric business avenues globally.

Sources: TechCrunch, The Verge, Reuters

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