Google not going into the newspaper business, claims company chief

Google chief executive Eric Schmidt has scotched speculation that the internet search company plans to buy a newspaper, according to the Financial Times.

Not surprising, really, considering the hot water Google found itself in late last year over plans to make books available online.

Google reached an agreement in October to create a $125m fund to pay authors to have their work scanned and made available online, but it is still not out the woods.

The agreement is being investigated by the US Justice Department after Consumer Watchdog and the American Antitrust Institute raised concerns.

The official line, according to the Financial Times interview is that Google is trying to “avoid crossing the line” between technology and content.

Schmidt claims Google is instead working with publishers to make their websites “work better” for online advertising.

This makes sense because it would mean Google is sticking to what it knows best, but time will tell if this is just a smokescreen until the heat dies down.