Related rights: the Competition Authority imposes a fine of 250 million euros on Google

This is a surprise twist in the endless saga of neighboring rights, and a new major sanction for Google. This Wednesday morning, the French Competition Authority announced that it was imposing a fine of 250 million euros on Google, as part of the 2019 European law requiring online platforms to pay the media for the resumption of their content. The body accuses the American giant of several failures to implement the commitments it made in the summer of 2022, to close the dispute which then opposed it to French press publishers.

To make its decision, the Authority relied in part on the regular reports submitted by the Accuracy firm, the agent appointed at the time to keep it informed of the smooth progress of negotiations between Google and the press. The agent, who became aware of the remuneration contracts between the two parties, also surveyed the publishers on the negotiation practices of the world leader in tech. Faced with these elements, the competition watchdog then decided to open an investigation in the fall of 2023 and sent a barrage of questionnaires to Google and the media.

In the details of the complaints, the Authority judged, at the end of its investigation, that the amounts of remuneration paid by Google to publishers were not significant enough, in particular with regard to the indirect income received by the platform by offering on its search engine for media content. “The display of content reinforces the attractiveness of its search engine, and can play a role both in triggering a search and in the time spent by the user on the search engine and the personal data derived from it,” supported an October 8 ruling rendered by the Paris Court of Appeal.

Another major complaint: the body criticizes the group for having delayed too long in transmitting certain details on its methodology for calculating the amounts paid to certain publishers. She also criticizes the absence of an update mechanism in contracts. Google is also accused of wanting to influence the behavior of the agent.

Secondly, the Authority mentions several other breaches by Google following the launch of its artificial intelligence service Bard, now called Gemini. “The Authority first notes that Google failed to fulfill the obligation of transparency provided for in the first commitment, by not keeping publishers and press agencies informed of the use of their content by Bard,” she wrote in the text of its decision rendered this Wednesday.

France was the first country in 2019 to transpose the European directive, leaving room for certain inaccuracies regarding its application. Faced with these difficulties, the deputy Laurent Esquenet-Goxes (MoDem and Independents) of Haute-Garonne, co-president of the “Media and Information – Presidential Majority” group (known as “MIMP”), recently tabled a bill aimed at strengthening the effectiveness of neighboring rights by integrating arbitration mechanisms.

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Nothing prevents the American group from appealing the fine, with a request for a stay of execution. For Google, this is the second hefty sanction pronounced by the French competition watchdog, in the context of neighboring rights. She had, in fact, fined him 500 million euros in 2021, accusing him of not having negotiated in “good faith” with press publishers.

In France, Google has to date concluded agreements with nearly 450 press publications and agencies. Other discussions are also underway with the collective management organization for neighboring rights (DVP). The French press is still facing a categorical refusal to negotiate from Microsoft and X (formerly Twitter). Elon Musk's platform has also been assigned by several French media, including Le Figaro.