Spanish media giant Spanish newspaper La Vanguardia said it had agreed to pay investors $10 million for breach of contract.
The company had claimed in court that it had no knowledge of the content of the online newspaper’s website and had not informed its customers of its breach.
The paper, which had published controversial reports about the countrys ruling Popular Party, was forced to close in December, and it has since been taken private by the parent company, which is owned by Spanish telecoms company Telefonica.
The court had also ordered the company to pay damages of $7.7 million to two former employees of the company, one of whom was accused of leaking information to the newspaper.
“In the context of these events, we have decided to take legal action against Google to secure a remedy in the event that the matter is not resolved within the required timeframe,” the newspaper said in a statement.
The Spanish media regulator, the Autoridad de Estudios Competentes, said the Spanish company was entitled to the compensation, although the total amount was still unclear.
The newspaper said it expected the decision to be made by the end of next week.
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article The case comes as Spain’s ruling Popular party has been criticised for its handling of its online news and has also faced a wave of criticism for publishing false information on social media.
Spanish authorities have been investigating allegations of online hate speech, as well as allegations of corruption and tax evasion by the ruling party’s wealthy owners, many of whom own stakes in Spanish media companies.
The case has also highlighted how Spain’s newspaper industry is heavily dependent on advertising revenue.