CNMC Investigates Google in Spain Over Potential Anti-Competitive Practices Affecting Publishers

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A notable development in Spain involves the National Markets and Competition Commission engaging with Google. The Spaniard-led inquiry, under the direction of CNMC, followed a formal complaint from the Spanish Center for Reproductive Rights, as well as a broader concern about potential anti-competitive conduct by Google and its parent company Alphabet that could affect publishers, press agencies, and the media sector. The complaining body was empowered to collect what is commonly referred to as the Google Fee, a revenue mechanism tied to the use of content protected by intellectual property law.

The CNMC indicated that the actions under review may include abuses by Google in its dominant position within the Spanish market. The agency stated that the investigation will cover possible acts of unfair competition that could impact the public interest by hindering healthy market competition.

According to the commission, the practices being examined could lead to sanctions that involve unfair trading conditions for Spanish publishers of press content and news agencies that rely on material protected by intellectual property rights.

The inquiry stems from the complaint filed by the Spanish Center for Reproduction Rights and the information accumulated during a confidential information phase. The CNMC initiated proceedings against Google under provisions of the nation’s competition law and aligned with broader European Union competition standards, signaling the seriousness of the review.

Despite the filing, the commission clarified that the start of this case does not determine the final outcome. The examination and decision could extend up to eighteen months as the process unfolds and facts are evaluated thoroughly.

Google’s response

A Google spokesperson stated that the company is engaging constructively with publishers in Spain and across Europe. The company emphasized ongoing investments in products, programs, and funding aimed at supporting content creators, and pledged to review the details of the case and respond to CNMC’s questions.

The possible penalties depend on the gravity of any proven violations. If a violation is deemed light, a fine could reach a small portion of Google’s worldwide turnover. In more serious cases, the penalty may escalate, with higher percentages of global revenue potentially at stake. The CNMC noted that the severity of violations would guide the appropriate sanction.

Historically, CNMC has shown increased vigilance toward major tech platforms. This action marks a notable moment, as it is not the first time such a case has been brought against digital multinational companies. A previous inquiry occurred in the mid-2021 period, when CNMC examined practices involving major players in the sector. The landscape reflects a broader trend of intensified scrutiny over how large platforms interact with media publishers and use protected content.

Economic context remains relevant to understanding the stakes. Google, a dominant player in global digital services, has reported substantial profits and expanding revenue streams, even amid market fluctuations. The company’s earnings and strategic decisions continue to attract close attention from regulators and market watchers alike as they navigate complex questions about competition, innovation, and the remuneration of content creators across borders.

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