Google backs local newspaper mergers in the UK

Posted: Wednesday, 9 September 2009 - 4:04pm Bookmark and Share

A Google submission to the Office of Fair Trading will say that the competition authority should relax existing rules that have prevented a coming together of any two of the “big four” publishers — whose ranks also include Daily Mail and General Trust and Gannett’s Newsquest. In the letter, Matt Brittin, the managing director of Google UK, said: “Google supports the position of many newspapers for the need to allow for a 21st century merger regime, allowing local and regional news services to merge and consolidate in order to create...competitive news offerings”. The Office of Fair Trading (OFT) is currently reviewing the existing newspaper merger framework as part of the wider Digital Britain white paper being prepared by Lord Carter of Barnes — prompting hopes that further consolidation amongst publishers will be able to take place. Google’s intervention comes on the day co-founder Larry Page and chief executive Eric Schmidt come to Britain to answer questions at the company’s Zeitgeist conference, which will also feature a speech from Prince Charles and an appearance by Sir Richard Branson. The search engine is also the subject of complaints that it is stealing newspaper advertising and making the news business increasingly uneconomic, exacerbating the impact of the recession. In the US, the company is testing the sale of advertising on its Google News service, which links to content generated by news providers. Mr Brittin acknowledged broadly that newspaper owners now had to deal with the fact that “competition for consumer attention and for advertising revenue has intensified in recent years and the internet has further accelerated the change” — code for saying that local businesses now could choose whether to advertise on local papers or a website. Roger Parry, chairman of the publishers’ Local Media Alliance, which is calling for a relaxation of the rules, said that “web pioneers like Google have changed the rules of the game” and it was “very reassuring to have the case for a new regime supported by the game changer in chief”. More ...Google backs newspaper rollup .... more ...