Shailesh Prakash, a key executive at Google News, has resigned after a two-year tenure marked by escalating tensions between the tech giant and news publishers. Prakash, who served as Google News’ vice president and general manager, left during a critical period as publishers increasingly challenge Google’s impact on advertising revenue.
Background in Digital Transformation
Prakash joined Google in November 2022, bringing valuable experience from his 11 years as chief product and technology officer at the Washington Post. During his tenure at the Post, Prakash played a key role in the newspaper’s digital transformation and spearheaded the creation of its in-house ad technology.
He worked closely with Jeff Bezos after the Amazon founder acquired the newspaper in 2013, helping the Post adapt to digital challenges and improve profitability. [1] His move to Google News was seen as a strategic hire aimed at bridging gaps between Google and publishers, but Prakash’s exit now leaves open questions about the future direction of the division.
Tensions Rise as Publishers Demand Fair Revenue
Google has faced increasing scrutiny over its treatment of news publishers, who depend on Google-driven traffic to support advertising revenue. In May, Google stirred further controversy by introducing ‘AI Overviews’—auto-generated summaries at the top of search results, which some publishers argue redirect clicks away from their websites.
The Issue with AI Overviews
The News Media Alliance, a nonprofit representing over 2,200 publishers, criticized this feature, warning that it could be ‘catastrophic’ for publisher traffic and urging federal intervention. Many publishers also allege that Google’s AI models were trained on copyrighted news content without adequate credit or compensation.
Antitrust Pressure Mounts on Google
Google is also facing legal challenges on multiple fronts. The Justice Department has a major antitrust lawsuit targeting Google’s digital advertising business, accusing the company of monopolistic practices that allegedly siphon revenue from both publishers and advertisers.
- Digital Advertising Business: The lawsuit accuses Google of using its dominance in online search to exploit publishers and advertisers.
- Monopolistic Practices: Google’s alleged monopolistic practices have led to a decline in ad revenue for many news outlets, forcing them to rely heavily on Google-driven traffic.
Closing Arguments Set for November 25
Closing arguments in the case are set for Nov. 25, with a final ruling expected early next year. Meanwhile, a separate ruling in August determined that Google holds an illegal monopoly in online search, with Judge Amit Mehta scheduled to rule on possible remedies by summer 2025.
What This Means
Prakash’s resignation comes at a pivotal time for Google’s relationship with news publishers and its efforts to address AI-driven disruptions. With unresolved questions surrounding AI, revenue sharing, and fair content attribution, Google may face increased pressure from regulators and publishers alike.
A Path Forward for Google News
As the digital landscape continues to evolve, Google will need to address the concerns of news publishers and implement meaningful changes to its algorithms and business practices. This includes:
- Fair Revenue Sharing: Google should consider implementing a fair revenue-sharing model that benefits both itself and news publishers.
- AI Transparency: The company must provide greater transparency into its AI models, including how they are trained and what data is used.
- Content Attribution: Google should prioritize content attribution, ensuring that publishers receive proper credit for their work.
The Future of News Publishing
Prakash’s departure highlights the difficulty of managing the challenges facing news publishers. As technology continues to disrupt traditional publishing models, it is essential for companies like Google to adapt and find innovative solutions.
In conclusion, Prakash’s resignation marks a critical moment in Google’s efforts to address AI-driven disruptions and build stronger relationships with news publishers. The company’s next steps will be closely watched as it navigates this complex landscape.
Editor’s Note
This article was created by Alicia Shapiro, CMO of AiNews.com, with writing, image, and idea-generation support from ChatGPT, an AI assistant. However, the final perspective and editorial choices are solely Alicia Shapiro’s. Special thanks to ChatGPT for assistance with research and editorial support in crafting this article.
References
- The Wall Street Journal
- Google News
- Washington Post
- Amazon
- Justice Department
- Judge Amit Mehta
Note: All references are hyperlinked for easy access.