This past week the Italian antitrust authority (Autorità Garante della Concorrenza e del Mercato) conducted a search of Google’s Italian office and announced it was beginning an investigation into Google’s possible abuse of its dominant position in the Italian search engine market. The case was triggered by a complaint from the Italian Federation of News Publishers, FIEG (Federazione Italiana Editori Giornali). FIEG represents publishers of newspapers and magazines, together with press agencies.
So what’s the problem?
The news industry has struggled since the mid 1990s to figure out a profitable internet strategy. “Free” content needs to be supported by advertising revenue, yet poorly targeted banners and the like don’t pay much. Google’s indisputable success as an advertising powerhouse1 has captured the press’ attention.
