The Brief

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Google Reaches A Deal With French Publishers Over Link Tax

Reuters reports Google has reached a deal worth €60 million with French publishers, following disputes over linking to their content.

French publishers have been pushing for Google to pay a “link tax” for linking to their content for some time and the French president threatened to force Google’s hand with legislation if a deal wasn’t reached soon, firing a warning shot two weeks ago with the results of a study suggesting a tax on companies that collect data on people, something Google does extensively. Paid Content reported that Google tried to settle the matter before Christmas with a proposed €50 million annual payment to publishers, similar to a deal reached with Belgian publishers, but the publishers wanted better terms. The deal hinged on a third of the payment being used for ad purchases.

The new deal skirts the contentious issue of a direct copyright payout, an open invitation for other publishers to seek link taxes, by offering a €60 million Digital Publishing Innovation Fund that Google will use to “support transformative French digital publishing initiatives.”

Monday, February 4th

In The News

"Google is to pay 60 million euros ($82 million) into a special fund to help French media develop their presence on the Internet under a top-level deal signed on Friday, but will not pay them for posting links to their content."

Reuters

"Today I announced with President Hollande of France two new initiatives to help stimulate innovation and increase revenues for French publishers. 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

"As Google gets bogged down with the French government over a so-called “internet tax,” the newspaper Le Monde reports that the search giant tried and failed to reach a large-scale copyright deal before Christmas."

Paid Content

"While Google may see its payments to French publishers as a smart move for its own short-term purposes, the deal is still being seen by many as a payment for links, and that could set a dangerous precedent."

Giga Om