London: Google is ready to spend 60 million Euros to help settle a legal dispute with French newspaper and magazine publishers over whether it should pay them to link to their stories on the Web.
It follows two months of negotiations after local news sites had demanded payment for displaying their links.
The French government had threatened to tax the revenue Google made from posting ads alongside the results, the BBC reports.
According to the report, the US-based Internet search giant had retorted it might stop indexing French papers'' articles.
In addition to the creating the Digital Publishing Innovation Fund, Google has agreed to give French media access to its advertising platforms at a reduced cost.
The compromise allows it to avoid paying an ongoing licensing fee, the report said.
According to the report, the firm has also made efforts to resolve a separate European dispute.
It has filed proposals with the European Commission stating how it intends to deal with complaints made by Microsoft and more than a dozen other companies that it had broken competition rules.