Brazil regulator approves deeper probe into Google's news content use

SAO PAULO, April ‌23 (Reuters) - Brazil's ​antitrust ​watchdog CADE approved on Thursday a recommendation to deepen investigations into the use of ‌journalistic content by Alphabet's Google, which would assess ⁠potential abuse of the company's dominant market position.

CADE's members ‌backed a proposal from its ‌interim chief Diogo Thomson de Andrade to return the case to its general superintendence for formal ​administrative proceedings, citing the evolution of Google's conduct since the 2019 inquiry began.

CONTEXT

• The case ⁠began following CADE's 2019 determination to examine competitive conditions in search and ​news markets.

• Initial investigation focused on Google's automated collection of journalistic content and its ​display in search results.

• CADE's ‌general superintendence had previously recommended shelving the case for lack of sufficient evidence ⁠of violations.

NEW FINDINGS

• De Andrade's new analysis noted Google's conduct evolved with AI generative features that synthesize information ⁠directly in search interfaces.

• It highlighted the potential structural dependency of ​news publishers on Google's search mechanisms for audience reach.

• De Andrade pointed out this could constitute exploitative abuse through ‌extracting value from third-party content without proportional compensation.

• Google said in a statement ‌it believes CADE's decision reflects a "misunderstanding" of how its ⁠products work, adding it ‌will continue to ​engage to address any questions.

(Reporting by Fernando Cardoso; Editing by Nia Williams and Lincoln ‌Feast.)

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