A few days ago, the Minister of Communications, Paulo Bernardo, raised controversy by suggesting that the biggest search engine of the Brazilian Internet could threaten the business of the TV and TV to the point of “swallowing the two”. “I think Google is becoming the big monopoly of the media,” he said.
The minister’s position is not unanimous. Cris Camargo, Marketing Manager at IAB Brasil, considers that although TVs played an important role in the country, communication is evolving through digital media. “I believe that the entire industry will reorganize. TVs will be digitalized, the internet will be in all media. There will be no threat, but reorganization and integration”, he evaluates.
And the search giant does not produce a single line of content, which allows it to dodge the controversy. When sought by the Digital Look to comment on Bernardo’s statement, the company limited itself to saying that “the internet is the most free and competitive environment in the world”.
CHAMPION OF MDIA
As much as it doesn’t get down to business directly, Google indexes material produced by entities and Internet users from around the world, making it the largest media company on the planet and has given you headaches.
In France, they had to pay the equivalent of R $ 161 million to maintain Google News, a case that opened the field to question the company’s methods across Europe. And in Brazil, ANJ (which represents 90% of the country’s newspapers) recommended that its members leave the tool, which since 2011 has been emptied.
These folks are keeping an eye on the money the search giant earns by associating ads with the material they produce – after all, Google’s advertising revenue exceeds that of all US print media.
In Brazil, the Internet is still nowhere near TV, in terms of relevance in the advertising market. Only 15% of the investments made by advertisers here go to the web. Still, Google has the strongest name in the industry.
Just do the math: 61% of advertisers’ funds that go to the internet in Brazil are in the hands of research companies; Google accounts for 96.17% of searches performed in the country, so almost all the money is left with it.
It was not only Paulo Bernardo who paid attention to these figures, President Dilma Rousseff also already raised her radar and put the IRS to analyze the company’s accounting. The body is looking for possible tax evasion crimes committed by technology companies – which also involves Facebook.
The companies will be investigated for commercializing services here via international credit cards, receiving in subsidiaries established in other countries. For the government, the business model needs to be revised because it uses loopholes that allow for the payment of less taxes.
Google responded by pointing out the investments made in the country since its arrival in 2006, and saying: “We pay all taxes that are due in Brazil, as well as in all other countries where we operate.”