New Report: Google Should Pay Polish Media 78.67 Million Euro

On 14 March 2023, FehrAdvice&Partners published a study stating that Google should pay the Polish media €78.67 million in yearly remuneration for utilizing their content. This study was prepared on behalf of the Union of Digital Publishers Employers.

According to the dish, Google has a dominant position on the Polish search engine market, controlling as much as 91.14 percent of this segment. Most of the value generated by the search engine comes from information queries, many of which are based on journalistic content. The study notes that despite the crucial contribution of media companies to the quality of Google search results, they presently receive no financial compensation.

The aim of the survey was to find the economical value of media content generated in the Polish Google search ecosystem. The study combines marketplace data on search revenues and marketplace shares with behavioral experimentation conducted among 2062 Polish netizens. The survey aimed to check how the presence or deficiency of media content in the search engine affects users' behaviour, satisfaction, trust and willingness to pay.

The results showed that 68% of users like a Google version containing media content. Removing these content leads to a decrease in the loyalty of users by 4.1 percent points, which accounts for almost 8 percent decrease. Google is besides seen as more complete, up-to-date, trustworthy and offering a higher quality erstwhile media content is present.

The study estimated the value of media content for Google in Poland. According to the data, the full gross from advertisements in the search engine is EUR 577 million, and thanks to Google's dominant position in the marketplace the estimated gross generated by the search engine is EUR 525.88 million. On this basis, it was calculated that the fair yearly value of the media content for Google in Poland ranges from EUR 49.98 million to EUR 119.04 million, with a mention value of EUR 78.67 million.

The survey confirmed that most Polish users usage Google as the main origin of information about current events. Over 90% of respondents believe that versatility, quality, trust, up-to-dateness, independency and knowing are crucial erstwhile assessing the value of search results.

The results clearly indicated that media presence in search results increases user retention in the Google ecosystem. erstwhile the media is included in the results, 61% of users stay in the Google ecosystem or find an answer without having to click, compared to 55% without the media.

68% of users chose a version with media content to ask which version they prefer, and only 32% preferred the version without them. These preferences besides translate into willingness to pay. More than 50% of survey participants declared willing to pay for Google search services, and users who were shown the version with media content were willing to pay more.

The results of the survey show that the average readiness to pay was PLN 7.22 for the version with the media, compared to PLN 7.32 without them – an increase of 8.2 percent. Among those willing to pay more than zero, the difference was PLN 13.02 compared to PLN 11.75, which means an increase of 18.15 percent in favour of the media version.

The survey shows that journalism content increases the perceived value of Google and the willingness of users to pay, highlighting their economical importance in search results. Google Poland reacted to the study. In a message sent “Virtual Media”, he calls it “unprecise”. akin analyses in another countries have been undermined – the company claims.

According to Google, the analysis does not take adequate account of the value that the search engine brings to publishers by ‘generating crucial traffic on their websites, which affects their advertising and subscription revenues’. In the position sent to the editor, the company besides pointed out that the investigation participants' declarations on the value of journalism content are not based on actual transactions due to the fact that the search engine is free and the willingness to pay is purely hypothetical.

Google Poland considers that the study takes the incorrect presumption that users' preference for Google with media content would translate into a certain percent of gross from information searches.