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

  • 21.03.2025 17:40
  • msn.com
  • Keywords: Regulatory Scrutiny, Market Impact

Google tested removing news from search results for users in eight EU markets, finding minimal impact on ad revenue. The company aims to use this data against paying publishers more but faces regulatory risks in France and Germany.

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Estimated market influence

Google

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Analyst rating: N/A

Google's test showed news had negligible impact on ad revenue, potentially affecting negotiations with publishers and facing regulatory issues.

European Publishers

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Analyst rating: N/A

Publishers may argue that Google undervalues their content, impacting negotiations.

Context

Analysis of Google's News Ad Business Test and Market Implications

  • Google Conducted Test: Removed news from search results for 1% of users across eight EU markets (Belgium, Croatia, Denmark, Greece, Italy, Netherlands, Poland, Spain) over 2.5 months.
  • Key Finding: The impact on ad revenue was "statistically indistinguishable from zero," suggesting news has minimal value to Google's ad business.
  • Regulatory Context: European copyright law requires payment for news snippets, but Google argues publishers overestimate their value.
  • Strategic Implications:
    • Google aims to use test results as leverage in negotiations with publishers.
    • Risk of increased regulatory scrutiny, as seen in France (fined $500M) and Germany (competition authority investigation).
  • Competitive Dynamics:
    • Potential for other tech companies to follow Google's approach, reducing reliance on news content in search results.
    • Could shift user behavior toward alternative platforms like Apple News or social media for news consumption.
  • Long-Term Effects:
    • Possible redefinition of value between tech giants and news publishers.
    • Uncertainty for news industry revenue models if Google's claims are widely adopted.