The company behind the world’s largest online shopping community has called out Google for anti-competitive behaviour amid claims the tech giant has unfairly penalised news site revenue streams.
Just days after a group of media owners and advertisers took Google to the UK Competition Appeal Tribunal, alleging the company is abusing its power in the digital ad market, Global Savings Group claims Google is going against its own guidelines and threatening an important revenue stream.
The company’s brands include hotukdeals, Pepper and Pouch, and it also powers the voucher portals for the likes of Daily Mail, Metro, and El País,
It claims the penalisation of the voucher code sections on media sites has the potential to wipe out millions in revenue for news publishers and has had an immediate impact on their web traffic numbers. In the past couple of days, many sites have seen their coupon sections slashed from search results, despite Google’s prior assurances that such content is permissible under proper editorial oversight.
In addition to contradicting its own advice and threatening an important revenue stream for media publishers, the company claims that thousands of people working on the coupon sections of media publishers’ sites could be affected.
Google has effectively decided that this business model is not permissible, a decision it really should not be in a position to make, Global Savings Group maintains. The firm also argues that Google once again appears to be using its monopolistic position to suppress competition. In 2017, the European Commission fined Google €2.42bn for abusing its market position to give an illegal advantage to its comparison shopping service.
Partnerships between news sites and third-party commerce content providers have played an important role for media publishers for many years, delivering value in multiple ways. These partnerships offer a natural extension of existing content offered by news sites.
Firstly, they enhance the user experience in the online coupons space; readers seeking money-saving offers appreciate the convenience of finding trusted discounts alongside the news content they already consume. Without these sites in the search engine results, the quality of content is objectively worse.
Secondly, they diversify revenue streams; the move from print to digital media disrupted many publishers’ business models. Commerce content such as coupons, deals, and product reviews provides an additional source of revenue, supporting independent journalism.
Thirdly, they leverage partner expertise; commerce content specialists bring valuable industry expertise, technology, and connections to advertisers, ultimately creating a valuable offering for readers.
When executed responsibly, these collaborations benefit users, advertisers, and publishers alike. The fact that Google has indiscriminately targeted these sites sends a message that it is not focused on content quality but rather on penalising specific business models, the Global Savings Group insists.
Chief executive says Gerhard Trautmann said: “News publishers have historically included commercial content alongside their editorial offerings. These Google penalties create uncertainty and major risk for a legitimate business practice. We urge a clear dialogue on how to maintain a high-quality user experience while ensuring news sites aren’t unfairly targeted.”
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