Summary
Google has entered into a licensing agreement with Twitter to access and index tweets in real time for its search results. The deal, reportedly valued at US$41 million, revives their earlier partnership and is expected to benefit both parties through increased revenue and user engagement. Twitter stands to gain exposure to a vast user base and additional traffic, while Google enhances its search offerings with timely social media content. The agreement may challenge competitors such as Facebook and Apple, and could prompt governments and media organisations to seek a share of the revenue. The development follows Google's recent closure of Google News in Spain over publishing tax issues.
Overview
Google has struck a deal with Twitter to acquire full access to tweets and their indexing in its search results on a real-time basis. Although neither party has disclosed or confirmed the details, Google has allegedly entered into a data licensing revenue agreement and is reported to pay US$41 million for the tweets. Google had been indexing tweets until 2011, before the launch of Google+, its social networking service which was considered a competitor to Twitter. Following expiration of that earlier deal, Twitter substituted Google with Bing, the search engine owned by Microsoft. Twitter has signed similar agreements with Bing and Yahoo, whose combined search share is considerably smaller than that of Google.
Commercial Context
Both Twitter and Google stand to benefit from the new licensing arrangement, which represents in essence a renewal of the original deal. Twitter gains revenue from increased traffic, as the deal provides access to a user base larger than that of Facebook. For Google, incorporating real-time tweets into its search results helps the company gauge the real-time pulse of global public discourse and offer users more relevant content, reinforcing its dominance in the online advertising market. The deal is expected to pose a competitive challenge for Facebook and Apple, as Google gains access to more current search results while Twitter reaches a substantially larger social network.
Regulatory and Policy Implications
In a related development, Google News had closed its operations in Spain rather than pay a newly introduced publishing tax on news aggregators. Although Google News and Google Search are distinct services, the new arrangement with Twitter may prompt governments and news organisations to seek a share of the revenue generated from Google’s search results. The manner in which Google manages these emerging regulatory pressures remains to be seen.
Disclaimer
This article is for general information and does not constitute legal advice. Readers should consult a qualified attorney before acting on any matter discussed here.