Google Extends Olive Branch to French Publishers

Google has offered French publishers about 50 million euros for the right to index their content. The problem Google (and other search engines) face is that French government is threatening to pass new laws requiring such payments.

That news comes as Google reportedly also is paying Orange to "terminate" or deliver its content to Orange end users. That deal, in all likelihood, is not what it seems to be. Google operates one of the largest IP networks in the world, so that specific deal probably is not a payment to Orange to deliver traffic, but only a traditional carrier-to-carrier termination agreement. 

The deal Google offered to the publishers includes the purchase of advertising space from Google, on paper and digital media, a commercial collaboration between publishers and search engine and the use by the publishers of Google's advertising platform AdSense.

Media owners rejected the offer, saying they wanted annual income of about 70 to 100 million euros.

The pressure from French publishers shows a possible crack in the traditional business relationship between some large application providers and some large media and telecom interests. Both of those industries want more of a share of Internet ecosystem revenue, and such fees as Google supposedly is paying are one way of achieving those objectives. 

Policy issues aside, the French media issue is significant, as Google now increasingly is faced with a choice: create new business and commercial deals with business partners, even when it would, in principle, rather not do so, or have regulators and legislators potentially force it to do so anyway, on terms Google will have no control over, or ability to influence.