Googles Italian offices were searched by financial police today, the regulator said. The probe focuses on claims Google didnt feature search results of newspapers that dont make content available on Google News, the Rome-based competition authority said in a statement.
Google has faced criticism from publishers over its news and search services. A global association of newspapers last year opposed Googles proposed partnership with Yahoo! Inc., arguing the two companies would have too much control of online advertising. Belgian newspapers in 2007 won a copyright suit blocking Google from linking to their articles on Google News.
“Publishers are a bit frustrated with Google, not only on a copyright infringement point of view, but also because of dominance of news and advertising markets,” Sophie Scrive, deputy executive director of the Brussels-based European Newspaper Publishing Association, said by telephone.
William Echikson, a Google spokesman in Brussels, said the company has been contacted by the Italian competition authority.
“Were finding out more details today although we do know that its in relation to Google News, which drives significant traffic and new readers to newspaper Web sites,” Echikson said in an e-mail.
The European Union isnt conducting an antitrust probe of Google, according to a spokeswoman who declined to be identified.
Penalizing Condition
Italian publishers claim Google wont run their content on its search engine unless it also appears on its News pages, an “extremely penalizing condition,” the regulator said. The probe will examine whether Googles actions have consolidated its position in brokering ad sales, the regulator said.
“Those who create content dont reap the fruits of their work,” said Carlo Malinconico, chairman of the Italian association of news publishers that represents the countrys leading dailies including Corriere della Sera and La Repubblica. “Were seeking to shed light on this phenomenon at a very difficult time for the news publishing industry.”
Newspaper Revenue
Newspaper revenue has fallen between 10 percent and 30 percent in all EU member states, the ENPA said in May. In April, the European Federation of Journalists sent a letter to the European Commission asking for help for the struggling newspaper industry on the continent.
The U.S. Justice Department is reviewing Googles proposed settlement of a book-scanning dispute as part of the companys plans to create an online database of millions of titles. The European Commission, the executive arm of the European Union, will hold a hearing on Sept. 7 about the settlement in Brussels.
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