France fines Google over half a billion dollars in dispute over payments for news to French publishers

Gulf Today Report

For the Internet giant and search engine bastion Google, this could be the mother of all fines. France has slapped Google with a fine of $592 million for its travesty of faith with French publishers. This involves a dispute over payments for their news.

France’s competition regulator threatened fines of another 900,000 euros (around $1million) per day if Google did not come up with proposals within two months on how it will compensate publishers.

The dispute is part of a move by France and other European Union bodies to force Google’s hand in paying news publishers for content.

The French antitrust agency had ordered Google last year to hold negotiations with news publishers within three months, and fined the company on Tuesday for breaching those orders.

Google had repeatedly been pulled up by France and the European Union for exploiting its predominant position.

France had last month issue a 220-million euro fine to Google for abusing its ‘dominant position’ in the online advertising business.

It just goes to prove one thing: when you are market leader, don’t abuse your power or superiority. It can just backfire.