Shailesh Prakash checks out of Google News

In a fresh twist to the ongoing tensions between Google and news publishers worldwide, Shailesh Prakash, a prominent executive in Google’s news division, has reportedly stepped down from his role as vice president and general manager for Google News. This resignation, as first reported by The Wall Street Journal (WSJ), comes amidst escalating friction with publishers globally and in India, where issues around advertising revenue sharing have become increasingly heated. Google’s subsequent refusal to comment on Prakash’s exit only fuels questions over the company’s position and future actions in this contentious area.

Prakash joined Google in late 2022, after a decade at The Washington Post, where he played a vital role in spearheading digital transformation strategies, including developing in-house ad tech capabilities. His extensive career includes positions at tech giants such as Sun Microsystems, Motorola, Netscape, Microsoft, and Sears Holdings, showcasing a wealth of experience in both technology and corporate strategy.

He is said to have collaborated closely with billionaire Jeff Bezos following the Amazon founder’s acquisition of The Washington Post for $500 million in 2013. His experience gave him valuable insights into the news industry's concerns regarding digital giants like Google, especially amid a backdrop of rising discontent over revenue-sharing practices and the impact of new AI-driven initiatives.

The ‘AI overviews’ controversy and tensions with publishers

Google’s relationship with publishers took a sharp turn in May 2023, when it launched the ‘AI Overviews’ feature at its annual I/O conference. This feature uses AI to generate brief summaries for complex search queries, placing these summaries at the top of search results while moving traditional links—often from publishers—further down the page.

The tech company’s justification is that these AI-generated responses provide concise, accurate answers for users, but publishers argue this change severely impacts their traffic and, by extension, revenue.

Danielle Coffey, CEO of the News/Media Alliance, warned CNN that Google’s recent announcement to integrate its AI tool, Gemini, into Search could be “catastrophic” for publishers. By generating answers to user queries directly within search results, Gemini may reduce clicks to original news sites, undermining publishers’ ability to monetise their content. While talking to CNN, she criticised Google’s approach as a “perverse twist on ‘innovation,’” noting that the tool leverages publishers’ content while diminishing their already limited traffic.

Critics argue that Google’s recent efforts, including ‘AI Overviews’ and similar advancements, are intensifying its monopoly over online search and content, which is already the subject of a landmark antitrust case in the United States. In addition, the company faces mounting pressure globally over the unpaid use of publisher content in training its AI models—an issue echoed in recent lawsuits by major media players like Axel Springer.

The Indian context: Publishers, revenue and a two-year probe

The stakes are particularly high in India, where publishers have voiced strong objections to Google’s practices. Represented by bodies like the Digital News Publishers Association (DNPA) and the News Broadcasters & Digital Association (NBDA), they assert that the tech giant’s control over ad revenue distribution marginalises their share, affecting the sustainability of news operations. This is especially significant in India, where an estimated 55% of news website traffic comes through Google, according to data presented to the Competition Commission of India (CCI).

Central to the publishers' grievances is the rise in ‘zero-click searches’, a phenomenon where Google’s snippets or summaries satisfy users’ queries on the search result page itself, meaning users do not click through to publishers’ websites. Consequently, it benefits by retaining traffic and displaying its own ads, while publishers miss out on potential revenue. Adding to their concerns, publishers also lack access to Google’s data on the revenue generated through these searches, making it harder to advocate for a fairer distribution model.

In January 2022, after receiving multiple complaints from publishing associations, the CCI launched an investigation into Google’s dominance over digital advertising and its alleged revenue practices. The case has since been a closely watched development, expected to define whether Google has abused its market position and, more significantly, whether it should pay publishers for using snippets from their content in search results.

Recommendations, legislative pushbacks and slow progress

Following the publishers' complaint, a parliamentary committee on finance in December 2022, led by then-chair Jayant Sinha, recommended introducing a ‘fair bargaining code’. This would enable publishers to negotiate fairer contracts with major tech companies, echoing similar moves in other countries like Australia, where legislation mandates companies like Google and Meta to pay for news content. However, this recommendation has yet to be included in India’s draft Digital Competition Bill.

Instead, the Ministry of Information and Broadcasting (I&B) is reportedly considering a separate legislative approach. In June 2023, the ministry organised an interministerial meeting to address the ‘imbalance of bargaining power’ between publishers and Big Tech, but no final decision has been made on the regulatory framework required to address publishers' concerns. This meeting, attended by the Digital News Publishers Association (DNPA), was mainly exploratory, aiming to improve government understanding of digital advertising and stakeholder revenues.

The delay in implementing a concrete legal framework has frustrated some stakeholders. Many argue that addressing publishers’ revenue challenges should not be bogged down by procedural debates over jurisdiction—whether it falls under competition law or another regulatory area. Instead, they advocate for collaborative engagement between regulatory authorities and tech firms to facilitate revenue-sharing negotiations.

A sector at a crossroads: The CCI’s pending verdict

As the CCI investigation nears its conclusion, it is expected to clarify the legal stance on Google's market dominance in India and set the stage for future publisher-tech company relations in the country. The findings are anticipated by the end of this year and will likely address whether Google’s ‘zero-click search’ feature amounts to an abuse of its dominant position in online search and advertising.

Moreover, the CCI’s ruling could force Google to consider a more equitable revenue-sharing model with publishers—a development that would benefit smaller digital news platforms and ensure a more diversified online news ecosystem in India. In other markets, such as France and Australia, similar legislative frameworks have already been implemented to protect publishers and ensure they are fairly compensated.

Google’s struggles with publishers reveal an increasingly complex relationship that is not only about profit but about the digital ecosystem’s long-term viability. In markets with robust legislation like France, where the government mandates Google to pay publishers, publishers have seen direct benefits. This, however, requires strong legislative support and clear legal frameworks that define fair play in the digital arena—something Indian publishers are now hopeful for.

Prakash’s resignation leaves Google at a critical juncture in its negotiations with global and Indian publishers, as the company faces calls to reassess its revenue-sharing practices and mitigate the impacts of AI-driven solutions. With the CCI expected to issue its findings soon, a ruling in favour of publishers could prompt Google to adopt more cooperative practices. This would not only offer much-needed revenue relief to Indian publishers but also set a precedent that big tech companies must adapt to regional market needs and regulatory pressures.

As India’s publishers wait for the CCI’s decision, the case underlines a wider battle over fair competition and sustainable news ecosystems in the digital age. Whether Google and Indian publishers will reach a resolution remains to be seen, but the developments ahead will likely shape the future of digital news in India and beyond.