Google and the European Telcos

April 12, 2010

The Financial Times’s “Google Accused of YouTube ‘Free Ride’” documents and fans the flames for a Google and European telecommunications dust up. You will need to read the FT’s article in full and make up your own mind about this issue. From my vantage point, if the contention increases, Google will have another legal matter to manage. Like the Viacom situation, high profile legal hassles create public relations problems and cost money. Accumulating legal problems sends a signal in itself. Depending on one’s relationship with Google, the signal can be good for business or an inhibitor for business.

For me, the most interesting passage in the write up was:

To increase the pressure on Google, the telecoms groups are interested in finding common cause with content owners such as media companies, which get little or no money from the technology company when it aggregates their content on Google News.

Facing anti-Google forces that act in concert could, in itself, become a distraction for Google’s senior management. Google has the technology to deal with almost any challenge. We will know, possibly by the end of 2010, if Google’s senior management has that same capacity. Even Google’s billions may not be enough to meet the cash needs of the many folks who want Google to pay for access, services, risk, or any other reason that enables a cash life support system from Google to them.

Stephen E Arnold, March 12, 2010

An unsponsored post.

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