France's competition watchdog on Wednesday announced it had fined Google's parent company, Alphabet, €250 million. The penalty stems from a 2019 EU law requiring online platforms to compensate media outlets for using their content.
The Autorité de la Concurrence, or Competition Authority, accused Google of failing to fulfil commitments it made two years ago to implement the law with regards to online media payments and the use of news content by its Gemini AI platform.
Google had not negotiated in "good faith" with news publishers on how much compensation they would receive for use of their content, the body said in a statement.
The fine is linked to a copyright and neighbouring rights dispute in France over online content in a case triggered by complaints from some of the country's biggest news organisations.
Neighbouring rights are granted to performers, producers and broadcasting organisations in relation to their performances or recordings.
They are distinct from copyright, which typically applies to the creation of original works such as songs or literary texts.
Monitor appointed
French daily Le Figaro said that to reach its decision the watchdog had relied partially on regular reports submitted by Accuracy, an independent consultancy firm appointed as a monitor to keep the authority informed of negotiations between Google and the media.
Accuracy also asked publishers via a survey about the negotiation practices of the global tech leader.
Based on this evidence, the watchdog launched an investigation in autumn 2023, sending numerous questionnaires to Google and the media, Le Figaro said, quoting unnamed sources.
It found the compensation amounts Google paid to publishers were not sufficient considering the indirect revenues generated by displaying media content on its search engine.
Google was criticised for delaying the disclosure of details regarding its calculation methodology for payments to certain publishers, and for failing to update contracts.
It was also accused of attempting to influence the behaviour of the appointed mediator.
AI breach
Meanwhile the watchdog highlighted Google's failures following the launch of its artificial intelligence chatbot Gemini, which was launched in February 2023 under the name Bard.
Google was found to have violated transparency obligations by not informing media outlets and news agencies about the use of their content by Gemini, and previously Bard, to build its artificial intelligence tools.
"Google linked the use of the content concerned by its artificial intelligence service to the display of protected content," the watchdog said – adding that in doing so Google hindered the ability of publishers and press agencies to negotiate fair prices.
Wednesday’s fine is the second large penalty imposed by the French competition watchdog against Google regarding neighbouring rights.
In 2021, Google was fined €500 million. Google had said it would not contest the fine, while promising to implement corrective measures
In France, Google has reached agreements with nearly 450 press publications and agencies.
