Google has proposed measures to dispel the Bundeskartellamt’s competition concerns in the authority’s ongoing proceeding to examine the Google News Showcase online service. The Bundeskartellamt will now conduct consultations in the press publishing sector to determine whether these measures fit the purpose.

Following a complaint filed by the collecting society Corint Media, the Bundeskartellamt initiated a proceeding against Google in June 2021 to examine Google News Showcase under competition law (see press release of 4 Jine 2021). The examination is largely based on the authority’s competences under the new rules for large digital companies. The investigation follows the authority’s most recent decision determining Google’s “paramount significance for competition across markets” within the meaning of Section 19a(1) German Competition Act (GWB) (see press release of 5 January 2022). Google is thus subject to special abuse control by the Bundeskartellamt pursuant to Section 19a(2) GWB, which is relevant in this proceeding.

Google News Showcase is a news service offered by Google giving publishing companies the opportunity to present their contents in prominent “story panels”. The publishers’ “story panels” are displayed under Google News and Google Discover.

In its Google News Showcase proceeding the Bundeskartellamt is examining three aspects.

(1.) Google had originally announced to integrate and accordingly present the service in Google’s general search function. The authority fears that this approach will result in Google self-preferencing its own services or impeding services offered by competing third parties.

(2.) The authority is examining whether the relevant contractual terms unreasonably disadvantage the participating publishers and, in particular, make it disproportionately difficult for them to enforce their general ancillary copyright when participating in Google News Showcase.

(3.) The authority is reviewing the conditions for access to Google’s News Showcase service, i.e. whether non-discriminatory access is ensured for publishers.

Andreas Mundt, President of the Bundeskartellamt: “Google has proposed measures to respond to our competition concerns relating to Google News Showcase. The company no longer plans to include Showcase content in the general search results. The conditions for participating in Google News Showcase are not intended to prevent publishers from enforcing their general ancillary copyright. Access to Google News Showcase is based on objective criteria. We rely on the assessment of the market players affected to ensure that the measures proposed by Google are effective. In view of the wide variety of interests the publishers may have we are thus conducting broader consultations in the sector.”

Google has already changed some of the practices under examination and declared its willingness to address any remaining ambiguities and concerns by modifying the Showcase contracts and providing clarifying statements. In particular, Showcase contracts are to be clearly separated from the ongoing negotiations regarding other ancillary copyright payments between Google and the publishers or their collecting societies.

Andreas Mundt: “Parallel to the Google News Showcase proceeding we are closely monitoring the negotiations on ancillary copyright fees.”

The Bundeskartellamt will now obtain statements on the measures proposed by Google in the Google News Showcase proceeding from the complainant Corint Media and a number of German press publishers.