The Bundeskartellamt has concluded its proceeding against Google/Alphabet with regard to the “Google News Showcase” online news service after Google made a number of important adjustments to the benefit of publishers.

Google News Showcase is a Google news service which offers publishers options to present their content within a specific framework set by Google. The content made available is not selected based on Google’s mechanisms, but by the publishers themselves who also influence how the content is to be presented.

Andreas Mundt, President of the Bundeskartellamt: “We were concerned that similar services offered by other providers could be squeezed out of the market and that participating publishers could be unreasonably disadvantaged by Google. Google has responded to our concerns and implemented important adjustments to the benefit of publishers. In particular, during the course of our proceeding the company abandoned its plans to integrate Showcase into the general Google search service. It will continue to be irrelevant for the ranking of the search results whether or not a publisher participates in Showcase. Google has changed its contractual practice in such a way that press publishers will not face difficulties in asserting their general ancillary copyright. It has also been ensured that further publishers will be able to participate in Google News Showcase in the future.”

The proceeding initiated in June 2021 was mainly based on the Bundeskartellamt’s new competences under the provisions for large digital companies (Section 19a of the German Competition Act, GWB), which were introduced in early 2021. In December 2021, the Bundeskartellamt had already decided that Alphabet Inc., Mountain View, USA, and therefore also its subsidiary Google, is subject to extended abuse control by the competition authority (see press release of 5 January 2022).

Following the Bundeskartellamt’s intervention Google clarified that Showcase partners will also still be able to have their ancillary copyright collectively asserted by a collecting society. German publishers can now license their ancillary copyright regarding crawled press content separately from a Showcase agreement, just as already enforced in France by the French competition authority.

Google will implement further measures in the next few weeks. In particular, the company plans to provide more detailed information on essential framework conditions for Showcase. This includes a description of how Showcase works and what exactly is required from publishers wishing to participate. The company is thus working towards providing non-discriminatory access to the platform. The details of this access are subject to media supervision under the German State Media Treaty. The Bundeskartellamt will continue to closely monitor this development and examine any potential complaints by publishers that have been denied access.

Dispute about adequate remuneration for the publishers

Within the context of the proceeding under competition law on Google News Showcase the collecting society Corint Media and three associations of publishers have made further complaints against Google. These accusations mainly referred to the issue of adequate remuneration for published content used by Google (ancillary copyright for press publishers). For the time being the Bundeskartellamt has for discretionary reasons refrained from examining this in detail and has not intervened. With reference to the prohibition of discrimination the authority already achieved that Google offered to pay Corint Media ancillary copyright fees the level of which at least matched the fees payable under the licensing agreements concluded between Google and individual publishers. This included the offer of an interim agreement which ensures that the publishers represented by Corint Media have the option to clarify the level of remuneration in dispute proceedings.

As to the issue of adequate remuneration payable for the ancillary copyright for press publishers, the legislator has provided for a special arbitration proceeding to be conducted under the German Collecting Societies Act (VGG) at the German Patents and Trademark Office. Such a proceeding has already been brought by the parties. The Bundeskartellamt has the possibility to act as amicus curiae in the proceeding.

Further information are available in the following FAQ . A case summary relating to this proceeding (in German) is available here.