INS raises matter of unfair payment by Google to member publications with CCI

The Indian Newspaper Society (INS) has written to its members asking them to submit details regarding the agreement of their publications with Google for sharing of advertising revenue. This information has been sought in the context of the allegations that INS has raised against Google with the Competition Commission of India (CCI) stating that the Internet giant is allegedly abusing its dominant position related to News Referral Services and Google Ad Tech Services in the Indian online news media market.

INS had has filed an information with the Competition Commission of India on January 27, 2022 against Alphabet Inc (Google’s parent company), Google LLC, Google India Pvt Ltd, Google Ireland Ltd, and Google Asia Pacific Pte Ltd. It was also highlighted that the producers/ publishers of news, which are made available in digital format, are not being paid a fair value for their content, despite them having invested heavily in creating appropriate content for the customers, who search for news items using the Google platform.

The CCI after examining the contentions of the Society found that prima facie these allegations of abuse of dominant position are under the purview of the Competition Act, 2002 and it requires a detailed investigation by the Director General. In this connection, the DG, CCI vide notice dated August 12, 2022, sought certain information/ data.

Along with information regarding the publications and their key personnel, the members also need to provide details regarding their subscription revenues as well as advertising revenues. Other details sought pertain to the following:

• The architecture of advertising (online and print) ecosystem with suitable diagrams. Also the demand and supply side of ad tech value chain, including the role & functions of various intermediary service providers.
• Copies of terms of agreement entered between the member publications and Google for sharing of advertising revenue.
• Information on algorithm of Google pertaining to digital advertising and digital news.
• Elaborate on how Google has deprived the INS members of the fair value of the content, discouraged innovation and technical development of the services in the entire country.
• Details of the key officials of Google news, who are presently handling the operations in India.
• Details of the key officials of Google news, who are presently handling the operations regarding the sharing of revenue arrangement with the member publications.

Acknowledging the highly confidential nature of the information, INS has asked its members to send all the data/ information to the Society’s legal representatives, Gaggar & Partners, who will then collate the same and directly submit to the DG, CCI in a designated format of filing and claim confidentiality under the Competition Act, 2002. The members have been asked to send in the required information on or before October 8, 2022 enable Gaggar & Partners to proceed further in the matter.