Google Courts European News Outlets With $163 Million Digital News Initiatives

Google has created a new initiative that would allow the company to work hand-in-hand with publishers in Europe. Dubbed "Digital News Initiatives," the new scheme is aimed at exploring new product development, devising ways to increase publisher revenues and investing in research and training.

Google is investing $160 million into the project which, according to the company, will "support quality journalism through technology and innovation." It is partnering with eight European publications, including El Pais in Spain, La Stampa in Italy, NRC Group in the Netherlands, The Guardian and The Financial Times in the UK, Die Zeit and FAZ in Germany and Les Echos in France.

"Over the years, Google's relationship with news and the news industry has often been misunderstood and — dare I say it — sometimes misreported," said Carlo D'Asaro Biondo, Google's president of strategic partnerships in Europe. He added that Google has always wanted to be known as a "friend" of the news industry and not the other way around, which has often been reported.

As part of the initiative, Google also plans to hire staff who will be based in London, Hamburg and Paris. They will be assigned to work with newsrooms on digital skills. There will also be a working group to collaborate with the publishers that will focus on paid-for journalism, data insights, apps, videos, ads and Google News. All are aimed at increasing audience engagement, traffic and revenue.

The Digital News Initiative can be seen as Google's attempt to improve its image following weeks when the European Commission accused the company with abusing its dominance in Europe in the area of Internet search services. Part of the charge involves the launching of an antitrust probe on Android and its app-bundling practices.

"The feedback [from publishers] has been that Google can be complicated to work with and sometimes unpredictable," said D'Asaro Biondo. "We intend to change that and it's my job to change that."

Some publishers believe that a global rollout of the initiative that focuses on apps, video, ads, data and paid-for journalism would be best in order for it to become effective. Tony Danker, international director of Guardian news and media, commented that the initiative had real potential.

"But that potential depends on whether, having been conceived by Google in Europe, it is now adopted by Google in Mountain View. The test of success is whether it leads to meaningful change to ensure journalism flourishes in the digital age."

Photo: meneame comunicacions, sl I Flickr

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