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JACQUES OHNOUNA

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JACQUES OHNOUNA

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JACQUES OHNOUNA

Sun.26May

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The 'strangely secret' deal between Google and an ailing French press

06 FÉVRIER 2013 | BY DAN ISRAEL ET JÉRÔME HOURDEAUX

There was all the atmosphere of a joint press conference between heads of state when, on February 1st, French President François Hollande and Google Executive Chairman Eric Schmidt announced a deal had been reached between the US search engine giant and the French press over Google’s use of article contents.

Standing side by side behind identical speakers’ desks, amid the ornate decorations of an Elysée Palace salon, Hollande and Schmidt revealed Google’s agreement to pay 60 million euros into a fund to help French news publishers develop their presence on the internet, while the US company will also help to increase their online revenues using Google’s advertising platforms.

The courtesy shown to Schmidt during the event was yet further confirmation of the immense power that Google wields over the system of news distribution in France and, in turn, the weakness of the print news publishers, who can no longer survive with their dated economic model.    

Google Executive Chairman Eric Schmidt and François Hollande announcing the deal February 1st (in French only).

The agreement reached last Friday, the fine details of which will not be made public, was widely hailed in the international press as a landmark compromise in Europe, where news publishers in other countries are also challenging Google’s unpaid use of their material. It came after three months of negotiations and some 15 meetings between the different parties, under the mediation of Marc Shwartz, from the international accounting and consultancy group Mazars, who was appointed to the task by the French government.

The process began after a large number of French news publishers, acting together under an umbrella association called IPG (presse d’information, politique et générale), had demanded that Google pay for the right to catalogue their articles and publish them via Google News. Initially, Google dismissed the move, threatening to black out references to the French media, before finally entering negotiations, the result of which was uncertain right up to the end.

“The agreement was officially announced on Friday at 7 p.m., but right up to 3p.m. or 4p.m. we didn’t know if it would be finalized,” an Elysée source told Mediapart. “Eric Schmidt let it be known he was in Paris, and we had good hopes of being able to organize a meeting with the [French] president, to close the case in the same way that it was opened, during their last meeting on October 29th.” 

Hollande spoke of his “pride for France” in reaching such an agreement, which he described as “the first in the world” of its kind. Mediator Marc Schwartz agreed: “It is a first, that’s true,” he told Mediapart. “Until today, there was no example of an agreement of this amplitude signed by Google without there being first several years of legal [action].”

Previously in France, the largest news agency, AFP, succeeded in obtaining payment from Google of 1 million euros per year for use of its contents, but only after a lengthy battle in the courts. Similarly, Belgian news publishers reached a financial agreement with the firm late in 2012 only after gaining two legal rulings in their favour, firstly in 2006 and later in 2011.

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