As Google inks licensing deal with global media outlets, U.S. companies remain in the dark

Google inked new agreements with global media outlets to license its contents, but according to The Wall Street Journal, U.S. companies remain in the dark.

The new agreements

The Alphabet Inc (NASDAQ: GOOG) unit will partner with Germany’s Spiegel Group, Brazil’s Diarios Associados, and Australia’s Solstice Media to license their content on its platform, WSJ reported. This represents notable progress after several years of back-and-forth between the internet search giant and media outlets.

Google’s vice president of product management for news, Brad Bender, didn’t offer any financial details but did note it varies depending on how much and what type of content each individual publisher offers Google, according to WSJ. The company is in talks in “half a dozen” other countries.

Notably absent from the report is any confirmation of similar agreements with U.S. outlets or confirmation of ongoing talks with an American company. Nevertheless, recent deals represent a shift in Google’s relationship with the news industry. To date, Google was mostly interested in some audio, weather, and sports content.

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Why now?

Google will include licensed stories, videos, and images on its mobile app and on mobile devices when Android users swipe on their homescreen. It will also be included in a Google News app that will be standard for all mobile devices and eventually expanded to other Google products.

“We are highly motivated to play our part alongside other companies, governments and civil-society groups to enable a better future for journalism,” WSJ quoted Bender as saying.

The move comes at a time when Google has come under the crosshairs of several regulatory bodies worldwide. In Australia, the government has been pressuring the American-based company to give value back to publishers that offer content that is included in its search results. 

In fact, the Australian government was exploring ways of how it would force Google to start paying media outlets for content.

Google could have also been motivated to take action in order to keep up with rivals, according to WSJ. Most notably, Apple Inc. (NASDAQ: AAPL) launched its Apple News+ subscription platform that includes access to hundreds of magazines while other media outlets like Dow Jones & Co. supplies Apple with news reports.

Regardless, Google continues to face what appears to be an uphill battle against other regulators, especially in the U.S. The Justice Department and a handful of state attorney generals are looking to introduce antitrust litigation motions against Google that focus on its search and online-advertising business, according to WSJ.