Feeds

Google frenches Gallic media with €60m and some 'help'

Have some cash and forget all about that nasty link tax

The Power of One Infographic

Eric Schmidt, chairman of Google has dropped a little sweetener to the French media as Google's legal tussle over "a link tax" rumbles on.

Schmidt announced a 60m euro fund for "innovation" in French journalism and "help" for French publishers using Google's advertising tools, in a joint announcement with the French President Francois Hollande on Friday. Schmidt blogged:

First, Google has agreed to create a €60 million Digital Publishing Innovation Fund to help support transformative digital publishing initiatives for French readers.

Second, Google will deepen our partnership with French publishers to help increase their online revenues using our advertising technology.

Google faced pressure from the French government to pay a link tax for excerpting and linking to articles by French newspapers on search results pages, pages on which Google take all the ad revenue. Google have flatly resisted any suggestions of a link tax but looks like they've decided to charm rather than fight their way out of the impasse by scattering some money around.

The new plan will funnel a little Google cash towards troubled French media outlets without Google having to concede the principle of a link tax, a precedent that would be disastrous for the ad giant's business model.

The deal seems to have pacified France's government - Fleur Pellerin, France's Minister for Small and Medium Enterprise and the Digital Economy, tweeted that she was happy with the historic agreement which was a good example of constructive integration.

Pellerin said that the 60 million euros would finance modernisation projects and digital transition for the French media organisations.

Google faces pressure on the same issue from the German government.

Google faces several legislative challenges in France. Disputes recently have included whether sites that create a lot of traffic should subsidise network infrastructure, and whether web companies should be charged when they take user information - as a means to claw back tax revenue from the American companies. ®

Boost IT visibility and business value

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.