Google may reduce funding for additional US news publishers

Google is considering cutting its investments in California news media due to a new bill in the state that could lead to the removal of links to California news outlets. The company has warned nonprofit newsrooms that it may suspend funding for the Google News Initiative, which provides over $300 million in funding to thousands of media outlets. This warning comes in response to a California bill that aims to charge a tax on large companies like Google every time they sell user information to advertisers. The revenue from this tax would then fund tax credits for the state’s media outlets.

While this law would only impact California, Google has reportedly suggested that it could suspend new subsidies nationwide out of concern that it may set a precedent for other states. Last month, Google tested removing links to California news outlets in response to the pending California Journalism Preservation Act (CJPA), which would require major tech platforms to pay to link to articles from California-based news publishers.

Google’s vice president of news partnerships, Jaffer Zaidi, previously announced in April that the company is pausing new investments in the California news ecosystem in response to the CJPA. News editors have argued that big tech companies should pay more to publish links to their articles, with estimates suggesting that Google could owe publishers billions of dollars annually if such a law were passed nationwide. Other countries like Australia and Canada have faced similar threats from Google regarding legislation designed to protect publishers, but agreements were eventually reached to address these concerns.

In conclusion, Google’s potential actions in response to the California bill could have significant implications for the news media ecosystem in the state and beyond. The company’s threat to remove links to California news outlets and suspend funding for the Google News Initiative highlights the ongoing tensions between tech giants and traditional media organizations. As governments around the world continue to explore ways to protect publishers and ensure a fair distribution of revenue in the digital age, it remains to be seen how these conflicts will be resolved and what impact they will have on the broader media landscape.

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https://www.theverge.com/2024/5/22/24162684/google-news-initiative-funding-outlets-us