Background on Google and its Relevance
Google, part of Alphabet Inc., is facing an antitrust investigation by the European Union (EU) regarding its “spam” policy. This development stems from complaints by publishers who claim that the policy has negatively impacted their revenue, potentially exposing Google to another substantial fine.
Google’s Actions Against Spam
In March of the previous year, Google initiated measures against companies manipulating its search algorithm to boost the ranking of other websites. This policy targets the practice of hosting third-party pages on a site to exploit search rankings by leveraging the host site’s ranking signals, commonly known as “SEO parasitism.”
EU’s Concerns Regarding Google’s Policy
The European Commission noted that its monitoring indicated Google was degrading the websites and content of media outlets and other publishers in Google search results when these sites included content from commercial partners.
Google’s policy appears to directly affect a common and legitimate method that publishers use to monetize their websites and content.
“We are concerned that Google’s policies may not allow news publishers to receive fair, reasonable, and non-discriminatory treatment in their search results,” said Teresa Ribera, the EU’s antitrust policy chief, in a statement.
“We will investigate to ensure that news publishers do not lose significant revenue at a challenging time for the industry, and to ensure that Google complies with the Digital Markets Act.”
Google’s Response to the EU Investigation
Google has countered the EU competition authority, asserting that the measure risks degrading search result quality.
“The announced investigation today into our efforts against spam is mistaken and risks harming millions of European users,” wrote Pandu Nayak, Google’s chief scientist for Search, in a blog post.
“The investigation lacks merit: a German court already dismissed a similar case, ruling that our anti-spam policy was valid, reasonable, and applied consistently.”
Google’s Anti-Spam Policy and Its Impact
Google’s anti-spam policy aims to level the playing field and prevent websites from using deceptive tactics to outrank competitors with superior content.
In April, German media company ActMeraki complained to the Commission that Google’s anti-spam policy penalizes websites. The Council of European Publishers, the European Association of Newspaper Editors, and the European Magazine Publishers Association have also expressed similar concerns.
Context of the EU Investigation
The EU investigation falls under the Digital Markets Act, which aims to curb the power of large tech companies. Violations can result in fines amounting to up to 10% of a company’s global annual sales.
Key Questions and Answers
- What is the EU investigating against Google? The EU is investigating Google’s “spam” policy, which publishers claim negatively impacts their revenue.
- What is Google’s “spam” policy? Google’s policy targets the practice of hosting third-party pages on a site to exploit search rankings, known as “SEO parasitism.”
- Why is the EU concerned about Google’s policy? The European Commission found that Google’s policy degrades the search rankings of media outlets and other publishers.
- How has Google responded to the EU investigation? Google claims the investigation is mistaken and risks harming European users, citing a German court’s dismissal of a similar case.
- What is the Digital Markets Act? The Digital Markets Act is a part of EU legislation designed to regulate large tech companies and curb their market power.
