European news organizations take on Google, looks to Brazil with hope
November 2, 2012, 12:12 am TWN
PARIS -- European news organizations bleeding money and readers are trying to avoid extinction by asking governments in France, Germany and Italy to step in and charge Google for using their content in its search results — something the Web giant has always done for free.
Critics — including, unsurprisingly, Google — say the strategy is shortsighted and self-destructive, and the search engine warns it will stop indexing European news sites if forced to pay. But publishers advocating a "Google tax" aimed at benefiting their industry point to the example of Brazil, where their counterparts abandoned the search engine and say repercussions have been minimal.
The dispute underscores a fundamental question facing media agencies around the world: Who should benefit from links to online content that is costly to produce and yet generates a fraction of the ad revenue that once allowed newspapers to flourish?
Europe has tried to sidestep Google before. Six years ago, then-French President Jacques Chirac unveiled plans for Quaero (Latin for "I search") as the answer to U.S. dominance of the Internet. The multi-platform search and operating system was supposed to work with desktop computers, mobile devices and even televisions.
Despite millions spent to develop Quaero, it went nowhere.
This week, implicit threats hovered over a meeting between current French President Francois Hollande and Eric Schmidt, Google's executive chairman.
Hollande demanded Google reach a deal with publishers over the copyright dispute and also address the French taxes it escapes by basing its European headquarters in Ireland. Google essentially reiterated a point it made in a recent letter to French publishers: Paris' latest attempt to impose itself would force readers to "Anglo-Saxon" sites based in countries with more favorable copyright laws, such as Britain and Ireland.
Google's post-meeting statement said the discussions dealt with "the contributions of the Internet to job creation and the influence of French culture in the world."
Adding to the pressure on Google in France, a French newspaper reported Wednesday that French authorities are threatening Google with a 1-billion-euro tax bill and investigating alleged financial wrongdoing.
Google France denied being notified of such a tax bill and said it will "continue to cooperate with the French authorities." Government spokeswoman Najat Vallaud-Belkacem wouldn't comment on the report in the weekly Canard Enchaine, except to say that if there were a tax probe, it would be covered by laws on fiscal secrecy.
French publishers, along with counterparts in Germany and Italy, are hoping Brazil will be the proof that there is a successful way to confront Google.