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Google: the president of Costa publishers wants clarity on revenues, taxes and the algorithm

The president of the Italian publishers (Fieg), Maurizio Costa, is pressing Google or calling it to answer on three crucial points: the transparency of revenues which amount to over one billion adverts (equal to what newspapers and magazines collect together), the lack of paying taxes on revenues in Italy and the arbitrariness of its algorithm

Google: the president of Costa publishers wants clarity on revenues, taxes and the algorithm

Is the algorithm with which Google arbitrarily establishes the hierarchy of news, regardless of their quality, really neutral or is it managed according to commercial logic? It is a problem that has been on the table for some time to which Google had promised to respond with the Panda project which was supposed to enhance not only the quantity but also the quality of information and give more space to even the smallest publications but which has never been solved thus giving give rise to heated controversy. Now the president of Fieg, the engineer Maurizio Costa, is taking charge of it with a vitriolic interview granted to "Il Sole 24 Ore".

The president of the Italian publishers demands clarifications from Google on the algorithm, ie on the “formula used to give hierarchies to information. From this - explains the number one of Fieg - very important issues such as commercial policies and also, an even more delicate aspect, profiles that concern privacy depend "and it is time for Google to provide exhaustive clarifications.

But Costa also attacks on two other points: revenues and taxes not paid by Google. On revenues, the president of Fieg invokes transparency and says: “Some uncontested estimates indicate over one billion of Google's revenues in terms of advertising sales, i.e. as much as magazines and newspapers combined. Knowing them would be essential” also from an antitrust point of view.

But does Google pay taxes on its revenues in Italy or not? This is the other point that Costa disputes “since Google's Italian revenues do not in any way correspond to taxes paid in Italy. This point – adds Costa with reference to the controversies involving Juncker and Luxembourg on tax avoidance – is particularly relevant because European sensitivity on the subject is rightly growing in these hours. And the consideration that Ireland, the tax haven from which Google operates, is outside the EU is worth little. Formally this is the case, but in substantial terms the problem is identical”. In short, the question remains open and promises sparks. 

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