France's Hollande Warns Google: Negotiate With Press or Face New Law. Like in Germany.
The president "noted that dialogue and negotiations between partners looked like the best option, but that if necessary a law could be passed on this matter, as it's happening in Germany.
"It's not a secret that we think a law like the ones proposed in France and Germany would be very damaging to the Internet. We have said so publicly for three years," Google said in an emailed statement earlier this month.
France's Hollande Warns Google: Negotiate With Press or Face New Law
By Gabriele Parussini
PARIS--French President Francois Hollande asked the executive chairman of Google Inc. ( GOOG) to settle a long-running dispute with the French press over revenue sharing from content posted online before the end of the year, or face new legislation--an event that would force the Internet company to pay for the right to cite news articles online.
"The president has wished that negotiation can start quickly and wrap up before the end of the year between Google and the editors," the French presidency said in a press release published after Mr. Hollande's meeting with Google Executive Chairman Eric Schmidt at the Elysee. The president "noted that dialogue and negotiations between partners looked like the best option, but that if necessary a law could be passed on this matter, as it's happening in Germany."
Last month, leading French newspaper publishers called on the government to adopt legislation imposing a settlement in their dispute with Google, forcing it and other search engines to share some of the advertising revenue. Their demand follows the German government approving in August draft legislation that would force search engines to pay commissions to German media websites.
Google has warned it would exclude French newspapers from its search engine if France implemented the proposed law, which would make search engines pay for the right to cite news online.
The new law--sometimes dubbed the "Google law"--has been pitched by French newspapers as a means to help support their business, which is under threat from a long-term migration of advertising away from print media, a trend exacerbated by cuts in advertising in the sluggish French economy.
In its position paper to government ministers, the search company said it "cannot accept" the creation of a right that would "threaten its own existence, and as a consequence would be forced to no longer link to French sites."
"It's not a secret that we think a law like the ones proposed in France and Germany would be very damaging to the Internet. We have said so publicly for three years," Google said in an emailed statement earlier this month.
Write to Gabriele Parussini at gabriele.parussini@dowjones.com
--Sam Schechner contributed to this article.
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