Google Faces EU Probe Over Alleged 'Demotion' of Commercial Content from News Media
A growing concern in the European Union has led to an investigation into Alphabet Inc.'s Google Search, with regulators accusing the tech giant of unfairly demoting commercial content from news media sites. The European Commission's executive arm has launched a probe into Google's anti-spam policy, which some argue is having a detrimental effect on traditional media outlets.
According to the EU, this "demotion" means that certain sponsored or advertiser-created content is being pushed down the search results pages, effectively rendering it invisible to users. This has significant implications for news publishers, who rely on advertising revenue to stay afloat in an increasingly digital landscape.
The commission's investigation stems from evidence suggesting that Google's policies are not treating news publishers equally. Media partnerships with businesses selling goods or services are considered normal commercial practice in the offline world, but some argue they should also exist online in a fair marketplace like Google.
For instance, if a newspaper partners with Nike to offer discounts, it could see its sub-domain being demoted to a point where users cannot find it anymore. This would have a direct impact on the newspaper's traffic and revenue.
"We are concerned that Google's policies do not allow news publishers to be treated in a fair, reasonable and non-discriminatory manner in its search results," said Teresa Ribera, the European Commission's executive vice-president for clean, just and competitive transition policies.
The commission will request evidence from publishers on any impacts they have experienced as a result of suspected breaches of fair practices. The investigation aims to ensure that news publishers are not losing out on important revenues at a difficult time for the industry.
Google has hit back at the EU's probe, calling it "misguided" and "without merit." The company claims its anti-spam policy is designed to build trustworthy results and fight deceptive pay-for-play tactics that degrade Google Search listings.
The investigation marks a significant development in the ongoing regulatory saga surrounding Google's dominance in the tech sector. With fines of up to 20% of revenue possible if Google is found to be practising systematic non-compliance, the stakes are high for the tech giant.
A growing concern in the European Union has led to an investigation into Alphabet Inc.'s Google Search, with regulators accusing the tech giant of unfairly demoting commercial content from news media sites. The European Commission's executive arm has launched a probe into Google's anti-spam policy, which some argue is having a detrimental effect on traditional media outlets.
According to the EU, this "demotion" means that certain sponsored or advertiser-created content is being pushed down the search results pages, effectively rendering it invisible to users. This has significant implications for news publishers, who rely on advertising revenue to stay afloat in an increasingly digital landscape.
The commission's investigation stems from evidence suggesting that Google's policies are not treating news publishers equally. Media partnerships with businesses selling goods or services are considered normal commercial practice in the offline world, but some argue they should also exist online in a fair marketplace like Google.
For instance, if a newspaper partners with Nike to offer discounts, it could see its sub-domain being demoted to a point where users cannot find it anymore. This would have a direct impact on the newspaper's traffic and revenue.
"We are concerned that Google's policies do not allow news publishers to be treated in a fair, reasonable and non-discriminatory manner in its search results," said Teresa Ribera, the European Commission's executive vice-president for clean, just and competitive transition policies.
The commission will request evidence from publishers on any impacts they have experienced as a result of suspected breaches of fair practices. The investigation aims to ensure that news publishers are not losing out on important revenues at a difficult time for the industry.
Google has hit back at the EU's probe, calling it "misguided" and "without merit." The company claims its anti-spam policy is designed to build trustworthy results and fight deceptive pay-for-play tactics that degrade Google Search listings.
The investigation marks a significant development in the ongoing regulatory saga surrounding Google's dominance in the tech sector. With fines of up to 20% of revenue possible if Google is found to be practising systematic non-compliance, the stakes are high for the tech giant.