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Google claims news is worthless to its ad business after test involving 1% of search results in eight EU markets

Google claims news is worthless to its ad business after test involving 1% of search results in eight EU markets

  • 21.03.2025 04:36
  • techcrunch.com
  • Keywords: danger, success

Google tested removing news from search results for 1% of users in eight EU markets and found it had minimal impact on ad revenue, potentially affecting copyright law negotiations but risking regulatory scrutiny.

Alphabet NewsAlphabet ReportsAAPLsentiment_satisfied

Estimated market influence

Google

Negativesentiment_dissatisfied
Analyst rating: N/A

Google claims news is worthless to its ad business after a test in eight EU markets.

Apple

Apple

Positivesentiment_satisfied
Analyst rating: Buy

Apple's role is mentioned briefly in the context of other companies, but no specific impact or market position change was found in this article.

Context

Analysis and Summary: Google's Test on News Impact in EU Markets

Business Insights

  • Test Details: Google removed news from 1% of search results across eight EU markets (Belgium, Croatia, Denmark, Greece, Italy, Netherlands, Poland, Spain) for 2.5 months.
  • Google's Claim: The value of news to its ad business is "statistically indistinguishable from zero."
  • Cost Avoidance Strategy: Google aims to use this data to negotiate lower payments with European publishers under copyright laws.

Market Implications

  • Ad Revenue Impact: News content contributes minimally to Google’s advertising revenue, potentially justifying reduced payouts.
  • Publisher Revenues at Risk: If Google succeeds, news publishers may face financial losses from diminished licensing fees.
  • Regulatory Scrutiny: The move could intensify regulatory scrutiny, particularly in markets like Germany where authorities are already investigating.

Competitive Dynamics

  • Strategic Posture: Google's stance positions it against European publishers, risking strained relationships and potential legal challenges.
  • Potential Backlash: Publishers may push back, leading to prolonged negotiations or alternative revenue strategies.

Long-Term Effects

  • Shift in Monetization Models: Could prompt publishers to diversify income streams, such as subscriptions or direct partnerships.
  • Industry-Wide Impact: Success might encourage other tech companies to adopt similar stances, altering the digital advertising landscape.

Regulatory Landscape

  • EU Copyright Law: The test challenges the value of news under EU regulations, potentially influencing future policy and enforcement.
  • Legal Risks for Google: Aggressive strategies may lead to increased regulatory scrutiny and potential fines, as seen in France.

This analysis highlights the strategic and financial implications of Google's actions, emphasizing the delicate balance between business interests and regulatory compliance.