Google fined €250 million by French Competition Authority

The Competition Authority has slapped a hefty fine of 250 million euros on Alphabet Inc, Google LLC, Google Ireland Ltd, and Google France, collectively known as “Google.” This fine comes as a consequence of Google failing to uphold specific commitments mandated by Decision 22-D-13, issued on June 21, 2022.

It’s worth noting that this decision marks the fourth ruling by the Competition Authority in the span of four years regarding this matter. These decisions are situated within the context of the enactment of the law of July 24, 2019, on related rights, aimed at redefining the negotiation dynamics between publishers, press agencies, and digital platforms. The objective is to ensure a balanced distribution of value among these stakeholders, especially in light of the significant changes in the press sector, including the shift towards digital platforms and the ensuing challenges in revenue distribution.

Previously, in April 2020, emergency measures in the form of injunctions were issued by the Authority (Decision 20-MC-01, April 9, 2020), which Google failed to comply with. Consequently, Google was fined 500 million euros and instructed to adhere to the initial injunctions (Decision 21-D-17, July 12, 2021).

In the subsequent ruling on the merits of the case, the Authority accepted the commitments proposed by Google to address competition concerns for a period of five years, renewable once. However, Google’s failure to cooperate with the appointed agent and its disregard for four out of seven commitments outlined in the decision led to sanctions.

The sanctioned commitments aimed to ensure:

1. Negotiations conducted in good faith based on transparent, objective, and non-discriminatory criteria within a three-month timeframe.
2. Transmission of necessary information to publishers or press agencies for transparent remuneration evaluation under related rights.
3. Measures to prevent negotiations from impacting other economic relations between Google and publishers or press agencies.

Of particular concern was Google’s “Bard” artificial intelligence service, launched in July 2023, which utilized content from publishers and press agencies without notification or approval. Furthermore, Google failed to provide a technical solution allowing these entities to opt-out of the use of their content by Bard without hindering the display of protected content elsewhere.

As a result of these breaches, the Authority imposed a financial penalty of 250 million euros on Google. Google, having agreed not to contest the facts, benefited from the settlement procedure and has proposed corrective measures to address identified shortcomings.

This ruling underscores the importance of adherence to commitments in fostering fair competition and transparent practices in the digital landscape, particularly in the realm of content distribution and remuneration.