Following on from Spain’s recent introduction of a ’Google Tax’ - compelling Google to pay Spanish publishers for any references included within their wholly advertising-free Google News listings, Google has decided to pull that service from its Spanish offerings.
The only thing that Spanish publishers have achieved by these actions is to punish their own consumers and deny themselves revenues by cutting off the most obvious discovery and referral route available to their content. Had they but heeded the lessons from their German counterparts - where similar actions caused web traffic to leading publications to plummet. One of the main instigators in Germany - ’Axel Springer Group’ was quick to backtrack when they realised the obvious and foolish consequences of their actions - hitting them square on their bottom line.
It’s so obvious who’s behind the latest EU motions to attempt to curtail Google activity. Google has every justification in pulling its services from countries which are that short-sighted and are outweighing the benefits of the many for the sake of the financial interests of a few leading industry lobby groups. As I have posted recently, publishers who invested too little and too late in the new technologies cannot rightly be seeking to penalise those who had the good judgement and foresight to see where the market was heading. Will the EU next introduce first-mover-advantage-tax to penalise those pioneering companies - the whole thing smacks of protectionism to me?
Those countries most active against Google and Amazon are the ones who have typically migrated the slowest towards new Internet-enabled technologies - these recent activities are looking more and more like a tax on innovation...