Google News Profiteering From Content Creators? Proposed ‘Link Tax’ May Lead To Shut Down In European UnionGoogle. (Chris Jackson/Getty Images)

If the European Union approves the proposal to impose a 'link tax' for using new stories, Google might be forced to shut down its Google News services, as reported by Times of India (TOI).

European Union (EU) is a political and economic union of 28 countries, located in Europe and decisions taken by the EU are enforceable in all the member countries.

This proposal was part of the copyright directive passed by the European Parliament (of EU) in September which stipulates that tech giants must pay the artists and journalists for using their content. This might make Google News financially unviable for the company.

Richard Gingras, the search giant’s vice-president of news, noted that though “it’s not desirable to shut down services,” he did not rule out its possibility in an interview with The Guardian.

While Google helps journalists and content creators reach thousands of new readers, publishers have often complained that Google takes a large share of the advertising revenue, the lifeline of the publishing industry, leaving very little for the companies.

Recounting a similar experience wherein Google had to shut down its news division in Spain for the same reasons, Gingras added, “We would not like to see that happen in Europe. Right now what we want to do is work with stakeholders.”

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