Alphabet Inc. (NASDAQ:GOOG) to play hardball with French media companies when it comes to linking to their content in its search results
While the US obsessed on Wednesday over what technically constitutes impeachment for a sitting American president, European news publishers were focused on something quite different: namely, a decision by Google to play hardball with French media companies when it comes to linking to their content in its search results.
As of Wednesday, unless a French publisher specifically says that it wants Google to do so, the search giant will no longer include short excerpts from news stories in its results. Instead, there will just be a headline. It’s not exactly clear how this will look in practice—in an earlier mockup that Google provided of search results with text from news publishers excluded, there was just a big white space where the excerpt and image were supposed to go. Needless to say, not something that is likely to get a lot of clicks.
Why is Google doing this? Because the French government recently passed a law that requires the company to pay publishers if it uses even short excerpts of their content on its pages.
The French law is a local variation of a recently adopted European Union copyright directive known as Article 11, which says that publishers are entitled to compensation for the use of even small chunks of text, a payment some refer to as a “link tax.” This in turn was inspired by similar attempts in other EU countries to get Google and others to pay for excerpts.
Germany tried with its Leistungsschutzrecht für Presseverleger law in 2013, and Spain tried with a similar law in 2014. In Germany, a number of publishers had their results removed from Google News when it refused to pay them, but later relented when their traffic declined by as much as 40 percent. And Google eventually removed Spain completely from the Google News index.
Google maintains that its news excerpts send publishers a huge amount of traffic—as the company’s head of news, Richard Gingras, pointed out in a blog post on Wednesday—and that this in turn generates revenue via advertising.
Publishers, however, note that ad revenue is falling, in part because Google and Facebook control the lion’s share of the market—which is why Google also likes to highlight the Google News Initiative, through which the company funds research and development (and even the creation of entirely new local news outlets, as it is doing through partnerships in both the UK and US).
The News Initiative got its start in 2006, when Belgium was the first country to sue Google for using content from local publishers without their consent. The two sides eventually settled, and Google agreed to fund research and development for the industry, and then offered similar deals to France and other countries.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 1,182.42.
The projected upper bound is: 1,312.21.
The projected lower bound is: 1,174.37.
The projected closing price is: 1,243.29.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.
A bearish harami occurred (where the current small black body is contained within an unusually large white body). During an uptrend (which appears to be the case with ALPHABET INC C) this pattern implies an end to the rally as the bulls appear to have exhausted themselves.
During a downtrend the bearish harami pattern is bullish as the bulls appear to be gaining strength as the bears weaken.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 67.3986. This is not an overbought or oversold reading. The last signal was a sell 6 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 59.68. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 41 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 93. This is not a topping or bottoming area. The last signal was a sell 7 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 2 period(s) ago.
Rex Takasugi – TD Profile
ALPHABET INC C closed down -5.130 at 1,241.390. Volume was 8% above average (neutral) and Bollinger Bands were 23% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,234.18 1,194.20 1,144.22
Volatility: 17 37 33
Volume: 1,361,731 1,454,146 1,510,757
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
ALPHABET INC C is currently 8.5% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of GOOG.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on GOOG.O and have had this outlook for the last 13 periods.