French authorities have been making a push to find ways for companies like Google Inc. (NASDAQ:GOOG) to pay for the increased demand on bandwidth with use of video streaming like Google-owned YouTube and other sites. But Google, which as been looking to increase revenue , actually got some help fro the French government in that regard, as one local internet service provider (ISP) had blocked Google ads.
The French government stepped up on behalf of Google Inc. (NASDAQ:GOOG) and forced a local ISP called Free to stop blocking Google advertisements on its service for users, following up on a previous action against another ISP called Orange. A story by the Wall Street Journal reported that French authorities too the action as part of a broader movement to shore up and tighten telecom regulations, which likely is part of a movement to get large Internet companies like Google and others to pay for the heavy bandwidth usage by Web sites that feature streaming videos and movies.
In the story, French technology minister Fleur Pellerin said, “In coming years, with the arrival of connected TV, Google TV, Apple TV and Amazon TV, there’s going to be more and more massive bandwidth consumption, and the question is who will pay for the necessary investments.”
Google Inc. (NASDAQ:GOOG) has said that it is doing its fair share of investment, paying billions of dollars to ensure adequate amounts of bandwidth, usually with the private third-party vendors or through ISPs directly. Google also has offered what it calls “universal features,” which it has claimed have contributed to incentivize subscribers to the local ISPs.
Despite that, Google France has not made any official statement about the French government’s action or its overlying regulatory campaign.
Halfway through Tuesday’s trading day, Google Inc. (NASDAQ:GOOG) stock was down about 1 percent on the session to just north of $727 a share.
What is your take on Google Inc. (NASDAQ:GOOG) at this point, and how do you assess its prospects for the year? We want your feedback and opinions about the company, the stock or this specific action by the French.
DISCLOSURE: I have no positions in the stock mentioned above.
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