New Delhi: The Competition Commission of India (CCI) is expected to announce its findings within weeks regarding a two-year investigation into complaints from digital news publishers against Google. These publishers argue that they are not receiving a fair share of advertising revenue.
The CCI’s Director General of Investigation will provide insights into whether Google, as a dominant player in internet search and online advertising, has misused its position to disadvantage news publishers who invest significantly in their operations. The report will clarify whether Google should compensate publishers for the news summaries displayed on its search result pages.
Publishers have reported an increase in “zero-click searches,” where users find satisfaction with the news summaries shown and do not visit the publishers’ websites. This trend allows Google to display advertisements on its search results while publishers miss out on traffic and potential revenue.
Lack of Data Access
According to the publishers, their revenue is reliant on the traffic directed to their sites, and they do not have access to data regarding the revenue generated by Google’s search engine.
The CCI initiated its probe in January 2022 based on complaints filed by the Digital News Publishers Association, which were later combined with complaints from The Indian Newspaper Society and the News Broadcasters & Digital Association. The complaints specifically named Alphabet Inc., Google LLC, Google India Private Ltd., and Google Ireland Ltd.
Petitioners informed the CCI that over half of the traffic to news organizations’ websites originates from Google search results. The regulator also noted that Google holds a significant position in the market for online digital advertising intermediation services.
Upcoming Report and Regulatory Framework The investigation report is anticipated shortly, after which the CCI will hear from all involved parties before making a final decision. This process will occur under the current ex-post enforcement regime, which addresses alleged anti-trust violations after they occur, contrasting with a proposed forward-looking regulatory framework the government is considering.
Experts indicate that CCI investigations typically uphold charges of anti-competitive practices.
Call for Fair Bargaining
In December 2022, a parliamentary finance committee, previously led by Jayant Sinha, recommended a fair bargaining code to help news publishers negotiate transparent contracts with major tech firms. However, this proposal has not yet made it into the suggested Digital Competition Bill. Instead, the Ministry of Information and Broadcasting is contemplating a standalone law, believing this issue may not be purely about competition.
India is also exploring a new law to ensure fair dealings between major tech companies and news publishers, drawing inspiration from Australia and other countries that require platforms like Google and Meta to pay for content usage.
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