SAO PAULO, April 23 - Brazil's competition regulator CADE approved on Thursday a recommendation to broaden its inquiry into how Alphabet's Google uses journalistic material, a step that opens the door to formal administrative proceedings to assess potential abuse of a dominant market position.
Members of CADE supported a proposal put forward by interim chief Diogo Thomson de Andrade to return the case to the agency's general superintendence for further action. De Andrade's recommendation pointed to changes in Google's behavior since the probe began in 2019 as a reason to revisit the matter in a more formal setting.
Context and procedural history
- The scrutiny began after CADE's 2019 decision to examine competitive conditions in the search and news markets.
- The initial phase of the investigation concentrated on Google's automated aggregation of journalistic content and the way that content is displayed in search results.
- At an earlier stage, CADE's general superintendence advised shelving the case, concluding that there was insufficient evidence of violations at that time.
New analysis and findings cited by de Andrade
De Andrade's renewed analysis emphasized that Google's conduct has evolved, now including AI-driven generative features that synthesize information directly within search interfaces. The assessment flagged a potential structural dependency of news publishers on Google's search mechanisms to reach audiences.
According to the interim chief's view, that dependency could amount to exploitative abuse if Google is extracting value from third-party journalistic content without providing proportional compensation in return. Those concerns underpinned the recommendation to advance the matter back to the general superintendence and consider formal administrative procedures.
Response from Google
Google issued a statement saying it believes CADE's decision reflects a "misunderstanding" of how its products operate and indicated it will continue to engage with the regulator to address questions.
Key points
- CADE voted to deepen its inquiry into Google's use of news content by returning the case to the general superintendence for formal administrative proceedings.
- The probe traces back to CADE's 2019 review of competitive dynamics in search and news markets and initially focused on Google's automated collection and display of journalistic content.
- Recent analysis cited by CADE highlights AI generative search features and a potential structural dependence of publishers on Google's distribution mechanisms.
Risks and uncertainties
- Regulatory risk - The advancement to formal proceedings increases the possibility of regulatory action against Google if an abuse determination is reached, affecting the technology sector.
- Market dependence - News publishers could face audience and revenue pressure if their structural reliance on search platforms is confirmed, impacting the media sector.