Google is left with very little choice but to close their news site in Spain after an Intellectual Property law is set to come into effect around January 2015.
The law allows Spanish publishers to charge service providers, such as Google, for showing their publications, even if this was a small part of the article.
Google’s reasoning (ratio decidendi) behind the decision to close the site is down to the fact that they do not charge for advertising and would start operating at a loss. The tech giant might be forced to reconsider its presence within Europe after Germany recently passed a similar law which was scrapped after negotiations. Other investigations such as the companies tax avoidance and possible anti completive behaviour might be the final straw.
When a matter is taken to court, parties can, in some instances, make an offer to reach an agreement before the dispute proceeds to trial