Newspapers accounting for 90 percent of the circulation in Brazil have abandoned Google News.
Brazil's National Association of Newspapers said that all 154 members has followed its recommendation to ban the search engine aggregator from using their content.
The papers said that Google News refused to pay for content and was driving traffic away from their websites.
"Staying with Google News was not helping us grow our digital audiences, on the contrary," the association's president, Carlos Fernando Lindenberg Neto, said.
"By providing the first few lines of our stories to Internet users, the service reduces the chances that they will look at the entire story in our websites," he said.
According to the BBC, Google has previously said that the service boosted traffic to news websites.
The National Association of Newspapers, known by its acronym in Portuguese, the ANJ, and Google, carried out an experiment that began in December 2010, the report said.
It allowed Google News to carry the top line of news stories, to raise curiosity and get readers to click on the full story on the newspapers' sites.
Google said that newspapers and news aggregators should reach a solution to benefit both sides, but the ANJ said the experiment has failed.
Among the 154 titles that have pulled out from Google News are some of the country's most important news sites, such as O Globo and O Estado de Sao Paulo, the report said.
According to the report, Internet users using Google, but not Google News, will still be able to find content from most newspapers sites