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The future of local news is “civic information,” not “declining legacy systems,” says new report
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Dec. 11, 2014, 12:39 p.m.
Aggregation & Discovery

Earlier this year Spanish lawmakers passed a law requiring Google and other aggregators to pay local publishers for snippets or links to stories. As Europe continues to turn up the heat on Google, the company decided today to shut down Google News in Spain.

While it’s still uncertain how much companies like Google would have to pay every time an article appears, the penalty for not paying the fee is almost $750,000. That was apparently more than enough reason for Google to take its ball and go home. Richard Gingras, head of Google News writes:

This new legislation requires every Spanish publication to charge services like Google News for showing even the smallest snippet from their publications, whether they want to or not. As Google News itself makes no money (we do not show any advertising on the site) this new approach is simply not sustainable. So it’s with real sadness that on 16 December (before the new law comes into effect in January) we’ll remove Spanish publishers from Google News, and close Google News in Spain.

According to Mark Scott of The New York Times, Google plans to remove all Spanish publishers from its “global news aggregating products.” What effect Google’s decision will have on traffic for the Spanish news sites remains to be seen. As SEO consultant Adam Shrek’s recent analysis showed, the amount of traffic a site gets from Google News can vary.

All across Europe publishers have been demanding that Google start paying for content. Media companies in France, Spain, and Germany have led the fight, accusing the search company of becoming rich off copyrighted work from publishers. A similar law was passed in Germany, but rather than paying the fees outlined in the law Google gave publishers the choice to opt in to show up in search results. By opting in companies would waive their right to get paid. As Catherine Stupp wrote for the Lab earlier this month, there were immediate results:

To avoid paying the collection agency, VG Media, which represents the publishers that chose not to opt in, Google stopped showing snippets from their news articles on Oct. 23. Shortly after that, the publishers in VG Media gave Google a license to restore snippets to their search results — for free. Berlin-based Axel Springer, one of Europe’s largest publishers, announced on Nov. 5 that it had caved to Google’s pressure after traffic to its websites from Google dropped by 40 percent and from Google News by 80 percent when snippets were left out of search results.

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