Google says it will pay publishers $ 1 billion for news

Alphabet CEO Sundar Pichai speaks during a session at the World Economic Forum (WEF) annual meeting in Davos on January 22, 2020.

Fabrice Kofrini | AFP | Getty Images

LONDON – Google said it would pay publishers about $ 1 billion for the news over the next three years.

The pledge was announced by Google CEO Sundar Pichai in a blog post on Thursday.

Pichai said, “I have always valued quality journalism and believe that a vibrant news industry is important to a functioning democratic society.”

News publishers including Rupert Murdoch’s News Corp and German media giant Axel Springer have been calling Google for nearly a decade to pay them for their content, but the search giant has so far refused.

Google plans to pay publishers to create and curate content for a new mobile product called the Google News Showcase, which will initially go live in Brazil and Germany before launching in other countries. Publishers including Der Spiegel and Die Zeit in Germany and Folha de S. Paulo in Brazil have signed on to be part of the rollout program.

“The business model for newspapers – based on advertisements and subscription revenue – has been evolving for more than a century as viewers turned to other sources,” Pichai said.

“The Internet has been the latest change, and it certainly won’t be the last. We want to play our part by helping journalism in the 21st century.”

Google is not the only American tech giant under pressure to pay news. Facebook is also being asked to make regular payments to the media industry for sharing content on its platform.

The Australia Competition and Consumer Commission (ACCC) has developed a mandatory code to pay tech giants for the use of news content. If approved, a draft code announced by the ACCC in July will allow Australian outlets to secure payment within a few months.

Australian publishers have suggested that Google should pay them $ 600 million per year but Google reportedly declined that call.

Angela Mills Wade, executive director of the European Publishers Council, told the Financial Times that her members were “quite creepy”.

“By launching a product, Google can set the terms and conditions, undermining legislation designed to create conditions for fair negotiation, while claiming that they can help fund news production Are, “she said.


Leave a Reply

Your email address will not be published.