Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Google Inc (GOOGL): It’s Spanish Publishers Who Could Be In Trouble, Says Alex Barinka

Google Inc (NASDAQ:GOOGL) may seem the obvious victim as Spain enacts a law that allows publishers in the country to charge websites such as Google News that use their content. However, Alex Barinka on Bloomberg’s Street Smart thinks that it might be the other way around.

The comment comes after Google Inc (NASDAQ:GOOGL) revealed that it will shut down its Google News service for Spain starting December 16. Known as the LPI law, the measure was passed late in October and will take effect on January 2015.

“With this though, the companies that could be in trouble [are] actually the publishers. We saw a similar tax in Germany, where the onus was on the publishers to come to Google. But Axel Springer [AG], a German publisher, told The New York Times that they saw their web traffic drop off 40% on Google [and] 80% on Google News when they were pulled out of that search bar there,” she said.

Because of this effect that Google Inc (NASDAQ:GOOGL) has on publishers in countries where it pulls out, the onus could be on publishers to ensure that their content is seen, Barinka argued. Consumers are using Google whether or not the tech giant is running into these privacy issues, she said.

Google, is GOOGL a good stock to buy, Alex Barinka,

The Spanish law is only the latest in a collection of struggles the company is facing in Europe which includes fighting the now-infamous “Right To Be Forgotten” law. It imposes a maximum fine of up to 600,000 euros for services like Google News which refuse to pay for content that they use from Spanish publishers.

Google Inc (NASDAQ:GOOGL), the owner of several of the world’s most visited websites, has been adamant in opposing the LPI law, saying after its passing that it is in their belief that services such as Google News actually drive traffic to publishers’ websites.

Andreas Halvorsen’s Viking Global is a Google Inc (NASDAQ:GOOGL) shareholder with a stake of 923,500 shares in the company by the end of the third quarter.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!