Shailesh Prakash, the vice president and general manager of Google News, has resigned during an escalating friction between Google and news publishers. The resignation is following a period of scrutiny over Google’s business practices in digital advertising and news industries.
Prakash’s departure has added an additional layer of ongoing criticisms over Google’s influence in news and advertising.
Details of the Resignation
The Wall Street Journal has confirmed Prakash’s resignation from Google. Google has declined to comment on the former VP’s departure from the company, including reasons for the resignation.
Speculation has arisen about whether the resignation is related to the increasing scrutiny the company is facing.
Shailesh Prakash’s Background and Career
Shailesh joined Google in November of 2022 and had previous experience in the news industry from over a decade of working at The Washington Post. There, he played a crucial role in updating the company’s digital strategies, including overseeing the creation of an in-house ad system. This helped reduce The Washington Post’s dependence on external platforms.
Prakash worked directly with Amazon’s founder, Jeff Bezos after Amazon acquired The Washington Post in 2013. He also formerly held leadership positions at Microsoft and Sears, demonstrating his credibility in technology and product management.
Industry experts note that his previous experience understanding the challenges faced by news publishers made his role at Google significant.
Challenges Google Faces in the News Industry
Publishers are continuously accusing Google of dominating digital advertising, which is causing the downfall of many other publishers. There is also increasing concern over Google prioritizing its “AI Overviews,” AI-driven content that summarizes search queries quickly, minimizing visibility and traffic to relevant publication links.
The News Media Alliance has stated the feature is “catastrophic to our traffic.” The alliance is a non-profit organization that represents the interests of over 2,000 publications. The scrutiny does not stop from organizations and businesses in competing industries.
Further Publisher Allegations Against Google
There have been claims that Google is improperly using publishers’ copyrighted content to train artificial intelligence systems. A lack of credit or compensation fuels publisher frustrations.
There are also accusations of Google attempting to lobby with the US Trade Representative to block overseas regulations, such as Canada’s Online News Act, which would mandate Google to pay to display news.
The US Justice Department has an ongoing antitrust case aimed at Google’s digital advertising dominance. The prosecutors are claiming that Google exploits its market control to divert ad revenue away from competing publishers and advertisers.
A former News Corp executive, The Washington Post’s parent company, has revealed that the company would lose at least $9 million in revenue if they were to switch away from using Google’s ad products.
Impact on the News Industry
Publishers argue that Google’s dominance over the search and advertising markets is disproportionately limiting any other company’s ability to compete. Smaller news outlets are suffering from reduced visibility and lost revenue streams as a result of algorithm changes and AI-forward updates.
Speculation About Prakash’s Departure
Analysts are suggesting that Shailesh Prakash’s departure could be a result of Google’s increasing regulatory pressures within the industry. There may have been internal disagreements about how the company should handle relationships with publishers.
Prakash’s past experience advocating for publisher concerns at The Washington Post may conflict with Google’s alleged lack of collaboration with other publications in the news industry.
The Next Steps For Google
Google’s continued silence about the resignation raises questions about potential upcoming strategies addressing the tensions with publications. There could be a restructuring of the news division after Prakash’s departure from the company.
Google may potentially face legal consequences for its advertising and search practices in addition to the ongoing lawsuits.
Prakash’s resignation highlights the growing friction between Big Tech and the news industry. The broader implications of digital advertising and content distribution continue to be an issue as legal and regulation battles unfold.
The spotlight remains on Google’s ability to navigate this period of scrutiny.
