The dispute between Google and the French press should be solved within 10 days or it will lead to legislative intervention

Google and the French press are in business for nearly three months. If no agreement is reached within 10 days, the government is determined to intervene and pass legislation in place. This could cause severe damage to both parties.

Since November

about twice a week for several hours, representatives of Google and the French press gathered in camera.

To ease tensions, an experienced mediator has been appointed by the government. However, mistrust and misunderstanding still persists in the discussions, and the clock is ticking.

In the process deadlocked, negotiation revolves around money changes hands. From the outset, representatives of media companies ask Google to pay € 70 million ($ 93 million) per year for five years. It would be a "compensation" for "abusive" index and link content and collect 20 fragments of words. Perspective, it is € 70m roughly equivalent to 2012 digital revenue of newspapers and news magazines that are IPG association (presentation Civil and Political Rights).

When the discussion came to the structuring and labeling the cash transfer, IPG representatives disdain Google leaves the question: "Dress" they said. Unsurprisingly, Google was not very enthusiastic about this approach quite strong. However, the search engine considers that this might be a good time to negotiate a deal with the press, rather than perpetuating the latent hostility can explode and cost much more. At least, that's what European team Google seems to feel. (The structure of the hyper-centralized management of Mountain View seems slow to warm up to the idea.)

In Europe, the attacks against Google is more popular than ever

- not to mention all the others, with giant Internet based, widely accused of killing former activity (such as Virgin Megastore - a chain of stores that have presented all possible errors). But the focus is tax evasion. Most of these companies have hired the best lawyers money can buy and service designed programs developed to avoid paying corporate tax in the EU countries, especially the United Kingdom, Germany, France, Spain, Italy ... French digital Advisory Council - created by Nicolas Sarkozy and overall business - last year estimated that Google, Amazon, Facebook and Apple's iTunes have a combined income of € 2 , from 5000 to 3000 million €, but each only paid € 4,000,000 in average corporate tax instead of € 500 million (approximately 20% to 25% of the estimated tax rate). At a time of fiscal austerity, most governments consider this avoidance (perfectly legal) tax as politically unacceptable. In this context, Google is the number one goal. In the United Kingdom, for example, Google has made ? 2.5 billion (€ 3 or $ 4 billion) in 2011, but only paid ? 6 million (€ 7.1 million or 9.5 million) the corporate income tax. To make matters worse, in an interview with The Independent, president of Google, Eric Schmidt defended the company's strategy of tax in the worst way possible. "I am very proud of the structure we have created We are based on the incentives that governments give us to operate. Is called capitalism. We are proud capitalist. 'M Not confused about this. "

. I. Very useful.

Commenting on the ongoing negotiations on the

click value

the issue was quickly put runners Google Spreadsheet that came with the need to "disguise". If the media accepted the use of the full range of Google products to create more value for the company. Then, a certain amount could be derived from this value.

This is the basis of an agreement signed last year with the Belgian press (even if the agreement is covered by a strict confidentiality clause).

Unfortunately, the French press began to remove most of the eggs in the basket, one after another, leaving almost nothing for money "vectorize" transfer. Nearly three months after the discussion, we are stuck with opposing positions. Representatives of GIP are basically saying: We do not want to submit further by adopting Google tools opaque that we can find elsewhere. Google answers should not be considered a lot of money "fund" the French press leverage forever, without any change in our business, also denied any notion of "damages" to pay for the link to sites means. So the difference between the actual value of said first face and is (reluctantly) acceptable in another.

However, I believe that both parties underestimate what they will lose if they do not reach an agreement quickly.

The government's fiscal envelope is loaded with two shells.

expertise on the Mission of the digital economy taxation " (PDF here). It is a work of 200 pages, with the support of no less than 600 notes. Its authors, Nicolas Pierre Collin and Colin are members of the elite of the French population (one of the highest court, he

State Council

, and different from the equivalent General Assembly Accountability Office - Nicolas Colin is also a technology entrepreneur and former writer). The report of Collin and Colin, as it is now called, is based on a set of doctrines that also come to the surface in the United States (as evidenced by the numerous references in the report).
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