Google Inks News Content Deals With Italian Publishers Following Media Agencies' Backlash: Reuters

Alphabet Inc GOOGL GOOG inked its first license agreements in Italy with several publishers to offer access to selected content on its Showcase news platform, Reuters reports.

• Google News Showcase is a paid news content service that enabled the partnering publishers to curate content and provide limited access to paywalled stories for users.
• The Showcase news platform is expected to launch in Italy in the coming weeks.
• News publishers led by the European media groups have been battling Google for a long-time, seeking compensation for using their content.
• Google committed $1 billion to the global publishers over the next three years via Showcase, followed by its chronological launch in Germany, Belgium, India, Netherlands, and other countries.
• The Italian publishers included RCS Mediagroup SpA RZSMF, financial daily Il Sole 24 ore publisher, and Caltagirone editore.
• The financial details of the deal were not disclosed.
• The accords involved 13 Italian editorial companies, offering Google Showcase users access to content from 76 national and local papers.
• Alphabet inked similar deals with other global news outlets, including Germany, Brazil, and Britain.
• Global authorities introduced rules mandating Google, Facebook Inc FB, and others to share revenue with publishers, including a 2019 directive from Brussels, which was expected to be enacted into law by the European Union countries by June. Both Italy and Spain have to implement the new EU rules.
• Price action: GOOG shares traded higher by 0.45% at $2,062.21 on the last check Wednesday.