Google recently conducted an experiment across eight European Union (EU) countries, temporarily removing links to news content from European publishers for 1% of its users. According to the company, this removal had no measurable impact on its advertising revenue. Google appears to be leveraging these findings during ongoing negotiations with media outlets, potentially to weaken their position under the European Copyright Directive (EUCD).
The test began in November, covering Belgium, Croatia, Denmark, Greece, Italy, the Netherlands, Poland, and Spain. Initially, France was included, but later excluded after a court warned that participation might violate an earlier agreement, risking financial penalties.
Paul Liu, Google’s chief economic officer, stated that the exclusion of news content did not affect the company’s advertising revenue. The only recorded change was a 0.8% drop in search engine usage, attributed mainly to the loss of low-value queries that generated little to no revenue.
Clarifying the Value of News Content
Following the experiment, Google released an official statement on its blog, stressing: “During our negotiations to comply with the European Copyright Directive (EUCD), we encountered a number of inaccurate reports that significantly overestimated the importance of news content for Google. The results are clear: news content from Europe in Search does not have a measurable impact on Google’s advertising revenue.” Google asserts that the experiment was conducted to dispel misconceptions about the commercial significance of news content within its search ecosystem.
The context of the experiment centers on the EUCD, which obligates digital platforms to pay publishers for the use of article excerpts in search results. Google’s intention appears to be to demonstrate, based on the experiment’s data, that the economic value of such content has been overstated, challenging the publishers’ payment demands.
Broader Context and Global Precedents
It’s worth noting that France and Germany, key media markets, were excluded from the test. In France, Google has already faced antitrust sanctions, while in Germany, scrutiny around news licensing practices continues to intensify. Excluding these countries likely helped Google minimize legal risks and avoid further regulatory conflicts.
Similar tests have been conducted by Google in other regions, including Canada, California, and Australia. In Australia, the company even threatened to shut down its search service when legislation was proposed requiring licensing deals with media outlets. However, the law passed, Google remained, and agreements were later signed with Australian publishers, reminds NIXSOLUTIONS.
This ongoing strategy reflects Google’s approach to challenging regulatory demands globally. Yet, we’ll keep you updated as more developments unfold, especially as further negotiations and legal responses emerge within the EU and beyond.