Research from the UK Public Interest News Foundation suggests Google owes UK news publishers £2.2bn for using their content on its search platform. Google denies the claim, saying it doesn’t earn money from most news searches.
Survey shows Google is a destination for news content
The Public Interest News Foundation’s (PINF) recent survey, which questioned 1,484 UK residents about their online browsing habits, shows that 82% searched for news articles using search engines, and as Google controls around 94% of the UK online search market, most use it for news updates.
The survey confirms Google is now a significant news destination rather than a search engine that links to publishers’ articles. PINF’s research also reveals that since the release of AI-powered summaries, 67% of Google users searching for news articles do not click through to the original news source.
With the recent launch of Google TV Gemini-powered News Briefs in the U.S., Google is positioning itself as a leading global news provider. However, according to the PINF, the tech giant isn’t sharing the profits fairly.
The PINF said:
- “Google is able to provide more valuable results because of the work of news publishers. However, the value that news generates for Google isn’t shared fairly.
- “News providers are responsible for creating and verifying news content, they employ the journalists, investigate the stories, and carry the legal risks. Their work contributes to Google’s profits, but Google doesn’t share the profits equitably with them.”
PINF suggests 60-40 cut for content creators
The Public Interest News Foundation’s data suggests that news topics contribute information value to 66% of searches and Google should split the profits 60-40 with the original content creators (with Google receiving the lion`s share), which is how they estimated Google owes UK news publishers £2.2bn for 2023.
PINF’s recommended split is below the average tech platform and content creators’ share models; for example, Google gives publishers on YouTube 55% of the advertising revenue.
The PINF said the bill could be many billions:
- “If we factor in the previous years in which Google built up its dominant market position, we could be looking at a total bill of many billions of pounds.”
Adding that Google needs independent news publishers and should share the profits:
- “Without independent local news providers, Google would be less trustworthy, diverse, relevant, and ultimately less valuable. Therefore, the annual revenue from news to Google should be shared fairly between providers large and small.”
Google pushing independent news providers to extinction
PINF`s executive director, Jonathan Heawood, spoke positively about search engines and how they connect people with information, adding that news publishers also play an essential role in society.
Heawood wrote:
- “Search engines are wonderful things, connecting users with the world’s information. News providers also play a vital role in society, creating accurate and topical information on the issues that affect us all.
Heawood claims Google’s monopoly is ruining what should be a beautiful relationship:
- “This should be a match made in heaven, but Google’s monopoly over the search industry is squeezing the news industry—particularly independent and local providers—to the brink of extinction. Our research shows how different things could be and should be for the news industry.”
Google dismisses PINF’s study
Google, however, disagrees with PINF’s research, saying it’s misleading as it doesn’t run ads on news content or make a profit.
A Google spokesperson emphasized the point:
- “This study is misleading, and similar studies in other countries have been debunked.
Adding:
- “Fewer than 2% of all searches are news queries, and we don’t run ads or make money on the vast majority of them.
Google then turned its attention to how it benefits news publishers, saying:
- “Google Search creates enormous value for news publishers, driving more than 24 billion visits globally to their sites each month.”
Google told to play fair with publishers
PINF’s study comes two weeks after the UK Competition and Markets Authority began investigating Google’s search dominance under the new UK Digital Markets, Competition and Consumers Act to assess the tech giant’s impact on news publishers and if it has “strategic market status” in the UK, which could require Google to “trade on fair and reasonable terms” with its news publishers.
Google said upon the CMA opening its investigation:
- “Google looks forward to engaging constructively and laying out how our services benefit UK consumers and also businesses, as well as the trade-offs inherent in any new regulations.”
UK news publishers must now wait and see if that applies to them and if Google will share some of the profits from using their content.
