California: In a move that could significantly impact the future of journalism in California, a controversial bill requiring Google and other major digital platforms to pay news outlets for the articles they distribute is making headway.
The California Journalism Preservation Act, also known as Assembly Bill 886, has recently cleared the state Senate Judiciary Committee, marking a critical milestone in its legislative journey.
The bill, sponsored by the California News Publishers Association (of which the Los Angeles Times is a member), proposes that digital platforms pay a fee when they sell advertising alongside news content.
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The collected funds would be distributed to news outlets based on the number of journalists they employ, with 70% of the money mandated to go towards paying journalists in California.
This initiative comes at a time when the news industry is struggling to survive due to the rapid evolution of how information is consumed.
Senator Tom Umberg (D-Orange), chairman of the Senate Judiciary Committee, emphasized the importance of the marketplace in regulating industries but acknowledged the adverse effects the decline of journalism has on democracy.
“We have an obligation to find a way to support fair, trustworthy journalism,” he said during a hearing on the bill.
Interestingly, the bill does not specify the exact amount for the fund, leaving it up to the parties involved to determine an appropriate figure.
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Senator Henry Stern (D-Calabasas) indicated that discussions are progressing towards a possible agreement, a sentiment echoed by other lawmakers involved in the process.
In Canada, a similar law has led to Google contributing $74 million annually to a fund supporting the news industry.
This precedent provides a tangible example of how such a system can work, potentially guiding California’s approach.
However, the bill has faced significant opposition from the tech industry.
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Jaffer Zaidi, Google’s vice president of global news partnerships, argued that the bill undermines the principles of the free internet, as it forces platforms to pay publishers for the free traffic they provide.
Zaidi also pointed out that the bill unfairly targets Google and Meta (the parent company of Instagram and Facebook), and leaves out other large platforms that link to news from California publishers.
Zaidi suggested an alternative approach, proposing targeted programs funded by multiple companies rather than just the largest platforms.
He expressed Google’s commitment to working towards a mutually beneficial solution, emphasizing the company’s dedication to supporting journalism through different means.
Assemblymember Buffy Wicks (D-Oakland), the bill’s author, remains hopeful for a resolution. She has been actively engaging with opposing companies to find a middle ground that will ensure the news industry’s sustainability.
Wicks highlighted the critical role journalism plays in exposing societal issues and influencing legislative actions, such as extending the statute of limitations for sexual abuse lawsuits following investigative reports.
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The bill’s next step is the Senate Appropriations Committee. If it clears both legislative houses by the end of August, it will be presented to Governor Gavin Newsom for approval.
As negotiations continue, the outcome of this bill could set a significant precedent for how digital platforms interact with and support the news industry.
The stakes are high, with the future of journalism and the preservation of democratic values hanging in the balance.
