The interview

'Google's AI puts publishers' business at risk'

Agcom report to the EU Commission. Authority president Giacomo Lasorella: 'There is a systemic danger and nothing has been done to mitigate it'

by Andrea Biondi

Giacomo Lasorella Imagoeconomica

3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

'There is a risk to the activity of publishers. But broadening our view, we have to take into account that this is an issue that concerns pluralism and the possibility of conditioning public debate'. Agcom president Giacomo Lasorella starts from this point, speaking to Il Sole 24 Ore, to frame the profound reasons that led the Authority to decide to bring the Google case before the EU Commission.

In the crosshairs end up AI Overviews and AI Mode, the new interfaces with which the search engine responds directly to users, without going through links to the sites that produce that news. The result? Less advertising revenue for publishers and more difficulties in financing editorial staff and authors. And the smallest and most independent publications would pay the bill.

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The report stems from the FIEG complaint and the verifications conducted by Agcom. Publishers speak of traffic evaporating, revenues dwindling, and visibility decreasing, and this is why they welcomed Agcom's decision to report to Brussels, albeit not unanimously but with Commissioner Elisa Giomi voting against, complaining of Agcom's 'protectionist role in the interests of publishers'.

Google's AI, Lasorella emphasises, 'is, in fact, a mechanism that disincentivises the user to go directly to the sources'. Hence the decision to pivot to the Digital Services Act (Articles 27, 34 and 35). 'Platforms are required to assess the systemic risks arising from the services they offer to users and to mitigate the possible consequences. The evidence at our disposal,' adds Lasorella, 'has comforted us on the idea that this systemic risk has not been assessed and that adequate tools have not been put in place to mitigate it'.

Now the ball is in Brussels' court. "The national authorities can make this report. Then it is only a report and you submit to the Commission the need to investigate this'. This is not a detail: on large platforms the competence is European. And Italia is not alone. 'A similar report was made by the German authority before us,' recalls the Agcom president. So the Commission is faced with two converging alarms. If the investigation starts and the violations are ascertained, the risk for the platforms could be heavy: "In addition to specific orders, also that of a penalty that I believe will reach up to 6% of the turnover".

But the Google-AI dossier is only one piece of the game. The other, in parallel, is called 'fair compensation'. "The underlying theme is that platforms use journalistic content produced by newspapers, produced by journalists, they make a profit through advertising and a way must be found through which this process finds remuneration for those who produce the content". This is where the conflict between publishers and Big Tech becomes material: whoever collects value from a piece of news must recognise something to those who produced that news.

On 12 May, the final decision of the European Court of Justice is expected on the Italia model (regulation of January 2023 - resolution no. 3/2023/CONS - implementing Article 43-bis of the copyright law, concerning the identification of reference criteria for determining fair compensation for the online use of publications of a journalistic nature). In this case it is Meta that is contesting. "That of 12 May," Lasorella points out, "will be an extremely important appointment" because "it will indicate a way to settle this issue. If Italia is right, however, it will not be enough to defend what exists. "With AI, with the evolution of the mechanisms of use of journalistic content by platforms, there is probably a need for an update of this discipline".

This is why Agcom has also decided to open a permanent table between publishers and platforms on copyright, artificial intelligence and pluralism. "We want to create a place of confrontation," says Lasorella. The table will be voluntary: 'They are not obliged to, but it is important that all these subjects sit down and find a moment of dialogue on these issues'. Late? 'Better late than never,' admits the Agcom president. After all, 'all one can do is seek dialogue. The platforms are now subjects with which the publishing industry knows, and not just today, that it has to come to terms'.

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