The European Commission has proposed changes to copyright laws that would require video sites like YouTube to pay more to musicians and music labels, reports the BBC. It follows a plea by more than 1000 artists – among them Lady Gaga and Coldplay.
The draft directive will also require publishers and producers to tell performers or authors what profits their works have generated. The music industry has long criticised YouTube for failing to pay enough for content such as music …
The European Union has already filed two sets of antitrust charges against Google, the first accusing it of manipulating search results to favor its own products, the second alleging that Google forces Android device manufacturers to install its own apps and set Google search as the default.
Last summer, it was reported that the company may face a third antitrust case in Europe, this time for abusing its dominant position in advertising, and the WSJ reports that the EU is currently preparing to files these charges, possibly next month …
We had heard that the EU was planning to levy a substantial fine on Google for its alleged favoring of its own services in search over those belonging to competitors last year already, and the Telegraph is reporting that the European Commission is now estimating a hefty €3 billion ($3.4b) tag… Expand Expanding Close
Google seems to be under fire lately. Less than a week from the European Union’s charges against the Mountain View company regarding supposedly unfair practices towards its hardware partners, TIME is reporting that the famous stock photo agency Getty Images is now accusing the technology giant of “promoting piracy” with its Images search engine…
The Financial Times reports that tight deadlines given to four lawyers suggest that the European Commission’s Android anti-trust case against Google could see formal charges finalized this week, possibly as early as Wednesday.
TNW reports that the European Commission is pressing ahead with proposals to make Google News pay a fee for linking to news stories on the web. The EC says that as search results include a short excerpt from the piece, and that text is protected by copyright, Google must pay.
Three European countries have tried this, and it failed in all three. In Spain, Google simply decided to close Google News in that country, and news websites lost 10-15% of their traffic overnight. Spanish publishers – who had originally demanded the law – quickly realized their mistake and tried to pass a new law that would somehow force Google to return …
Just one day after the UK’s public spending watchdog described the £130M ($185M) back-tax paid by Google in the country as “disproportionately small,” France is demanding a rather larger sum. Reuters reports that the country’s finance ministry believes Google owes €1.6B ($1.76B).
“As far as our country is concerned, back taxes concerning this company amount to 1.6 billion euros,” the official, who spoke on condition of anonymity, said […]
Earlier this month, Finance Minister Michel Sapin ruled out striking a deal with the U.S. search engine company as the British government recently did, saying the sums at stake in France were “far greater” than those in Britain …
The Public Accounts Committee, the British Parliament’s public spending watchdog, has criticized the £130M ($185M) tax deal Google struck with the UK government as “disproportionately small.” The committee also criticized the secrecy around how the sum was calculated, reports the Guardian.
Google’s controversial tax deal cannot be properly assessed by MPs because of secrecy surrounding the negotiations, according to a report by parliament’s public spending watchdog. But the deal to pay £130m in back taxes for a 10-year period seems “disproportionately small when compared with the size of Google’s business in the UK”, the public accounts committee has found.
A report published today calls for more to be done to prevent “aggressive [tax] avoidance” by multinational companies, with Google accused of hypocrisy …
The European Commission says that the £130M ($185M) tax deal struck between Google and the UK government may amount to “illegal state aid” by offering the company better terms than those available to smaller businesses.
Google first came under fire for its tax arrangements in the UK in early 2013, when it was accused of funneling profits from UK Adword sales through Ireland, resulting in the company paying just £6M ($8.5M) tax on a turnover of £395M ($565M). In the new deal, it agreed to change its accounting practices to pay more tax in the UK, and to pay a lump sum in back tax …
With Google potentially facing a fine of up to $6.6B after the European Commission charged the company of abusing its dominant position in search, its lawyers have now filed a 130-page rebuttal. In it, the company attempts to use a legal technicality to argue that it cannot be fined for favouring its own products in search results … Expand Expanding Close
It seems Google’s legal woes in Europe will never end. The European Commission has long been running an investigation into whether Google was guilty of anti-competitive behaviour in Europe, which finally resulted in a filing of charges in April and a warning of large fines in June. It may be next year – some six years after the investigation began – before the final ruling.
A second anti-trust investigation into Android followed, and a third one not long afterwards, this time into its web advertising business. As if all that weren’t enough, the NY Times reports that a US law firm and European public affairs company have created a joint venture to help companies file civil claims against Google in the event that the EC finds it guilty of the first set of charges … Expand Expanding Close
Just as one European antitrust case against Google reached its conclusion, with a second one underway, it may be facing a third, reports the Financial Times.
The first antitrust case found that Google abused its dominant position in search to promote its own products over that of competitors. with the company told to expect large fines. A second one is underway, to determine whether Google forced smartphone manufacturers to favor its own apps over competitor ones in return for permission to use Android.
The FT now reports that a number of companies selling online advertising have asked the European Commission to consider a third case, to investigate Google’s dominance of the web advertising business … Expand Expanding Close
A study commissioned by Yelp and carried out by two prominent U.S. academics has quantified the impact of Google giving prominence to its own services over organic results, reports the WSJ.
The study’s authors— Michael Luca of Harvard Business School and Tim Wu of Columbia Law School—found that users were 45% more likely to click on results that were ranked purely by relevance, rather than as Google ranks them now, with its own services displayed prominently.
The study of 2,500 Internet users said that the results provided empirical evidence that Google’s promotion of its own services resulted in lower-quality search results for consumers. Google, in contrast, had argued that its own specialist services can provide consumers with more precise answers to their queries.
Yelp was one of a number of companies that filed European antitrust complaints against Google five years ago, leading to a European Commission investigation that has been running ever since – with various attempts by Google to bring proceedings to and end. Some of these were rejected while others were accepted, but the EC finally decided in April to file charges against Google, before being told to expect large fines.
The results of this study may influence the level of these fines.
The Financial Times is reporting that European mobile carriers are planning to block Google and other web ads in order to reduce demands on their networks and break Google’s hold on advertising (via TNW).
According to the story, which cites anonymous sources, the carriers have installed software from Israeli ad-blocking firm Shine in their data centers to block advertising in Web pages and apps, but not social networks.
Many websites, 9to5Google among them, depend on ad revenue to deliver free content to their readers. Any move to block ads could have far-reaching consequences … Expand Expanding Close
As expected, the EU has formally accused Google of abusing its dominant position in search to favor links to its own products over those offered by competitors. The complaint takes the form of a Statement of Objections: a formal method of announcing that it believes Google has acted illegally and that a full investigation is underway.
The Commission’s preliminary view is that such conduct infringes EU antitrust rules because it stifles competition and harms consumers. EU Commissioner Margrethe Vestager said that “Google now has the opportunity to convince the Commission to the contrary. However, if the investigation confirmed our concerns, Google would have to face the legal consequences and change the way it does business in Europe.”
Google has not wasted any time in attempting to convince the Commission otherwise, arguing in a blog post that the evidence shows that Google has not harmed traffic to competitor websites … Expand Expanding Close
It doesn’t sound good for Google in Europe where the company has faced continued criticism, some comical and some less so, for using its dominant 90+% search share to give advantages to its other properties and squash competitors. FT:
Google will on Wednesday be accused by Brussels of illegally abusing its dominance of the internet search market in Europe, a step that ultimately could force it to change its business model fundamentally and pay hefty fines. Margrethe Vestager, the EU’s competition commissioner, is to say that the US group will soon be served with a formal charge sheet alleging that it breached antitrust rules by diverting traffic from rivals to favour its own services, according to two people familiar with the case.
Europe’s competition chief, Margrethe Vestager, is expected to make an announcement that Google has abused its dominant position on Wednesday in Brussels, according to two people who spoke on Tuesday on the condition of anonymity…
“The E.U. competition commissioner, Margrethe Vestager, will decide what steps they want to go,” Günther Oettinger, a German politician who is charge of Europe’s digital economy, told Die Welt am Sonntag, a German newspaper, on Sunday. “I think that they will be far-reaching.”
Google has yet to comment on the matter but if Google fails to rebut any formal charges, Ms. Vestager could “levy a huge fine that could go above 6 billion euros, or $6.4 billion, amounting to about 10 percent of Google’s most recent annual revenue”.
Reuters reports that the plaintiffs in an antitrust lawsuit against Google have finally withdrawn their case. The case, which was brought against Google nearly a year ago, accused the company of being anticompetitive with several of its Search and Android practices.
According to a report from The Wall Street Journal, the European Commission is preparing to file antitrust charges against Google. The charges come after a five-year long investigation that’s stalled three times and caused strong political divides in Europe.
Europe’s top court has declared that ebooks are ‘services’ rather than books, and that European countries are not allowed to give them the same favorable tax treatment as paper books. The reasoning, such as it is, is that ebooks cannot be used without a physical device, and ebooks are a service provided to those devices.
Both France and Luxembourg have applied to ebooks the same reduced rate of VAT (sales tax) enjoyed by books made from crushed trees. The WSJ reports that the EU has ruled that this is illegal.
Since 2012, France has applied a 5.5% VAT rate and Luxembourg a 3% VAT rate on e-books, the same rate as for paper books. The European Court of Justice said both countries must apply their normal VAT rate, which for France is 20% and for Luxembourg is 17%.
Europe already closed one ebook-related tax loophole: Amazon used to use its Luxembourg base as a reason to charge just 3% on ebook sales throughout Europe, but a change in the law forced it to apply the VAT rate applicable to the customer’s own country.
There is some small hope that sanity may prevail in future. The European Commission has said that there may be legal mechanisms through which countries can in future define their own policies, with an “extensive overhaul” of VAT rules to be completed next year. However, don’t be surprised if ‘harmonization’ of tax rates for paper and digital books results in higher taxes on the former to pay for lower taxes on the latter …
Google has long been the subject of antitrust complainsand investigations in Europe, but now, some of the company’s competitors are starting to take note of its actions and step forward with their own issues. Yelp, TripAdvisor, and several other companies on Monday teamed up to launch a new website, Focus on the User, on which they express concerns regarding Google’s tendency to promote its own services at the expensive of its rivals. Which in turn, the companies argue, make it harder for customers to find Google’s competitors in results.
News Corp. recently issued a letter to the European Union blasting Google’s search and advertising practices. The correspondence also requested that the EU enforce stricter policies against the software company. News Corp. chief executive Robert Thomson wrote that Google was “willing to exploit its dominant market position to stifle competition.”
Following pressure from the European Commission, Google has announced that it is making changes to how it brands and advertises apps with in-app purchases on the Play Store. This comes after the EU accusing Apple of taking too long to change its in-app purchase policy.
Google says that it will no longer use the word “free” when advertising games that support in-app purchases. It will also work to come up with guidelines for games and developers to prevent them from encouraging children to buy items using in-app purchases. Finally, Google will also implement measures to monitor for breaches of European Union Law. Google plans to implement all of these changes starting at the end of September.
After more than three years of investigations and negotiations, Google and the European Union anti-trust authorities have finally settled the case in which the company was accused of abusing its dominant position in search.
The tl;dr version of the dispute was that Google search results were giving undue prominence to its own services – such as Google News and Google Shopping – and freezing out rivals. Google was eventually given a deadline of 31st January last year to submit proposals on how it would resolve the problem … Expand Expanding Close
The European Union’s long-running anti-trust case against Google, in which the search company was accused of using its dominant position in search to stifle competition, looks set to finally be resolved – though we may have to wait until Spring to learn the details.
Reuters reports that Google has made new proposals, which the EU suggests is likely to lead to a settlement.
Joaquin Almunia told lawmakers in the European Parliament he believed the new offer made it easier to see Google’s rivals when making an internet search.
“We have reached a key moment in this case,” Almunia said.
“Now with the significant improvements on the table I think we have the possibility to work again.
“If our investigation of this improved proposal is satisfactory then we will continue the commitments route and end up with a formal decision next spring,” he said, adding: “I think that the settlement route remains the best choice” … Expand Expanding Close
