California legislators are making progress on a bill that would require big tech companies like Google to pay news outlets for the articles they distribute. Assembly Bill 886, also known as the California Journalism Preservation Act, cleared a critical hurdle when it was approved by the state Senate Judiciary Committee. The legislation aims to address the issue of the shrinking news industry as technology changes how people consume information.
The bill would require digital platforms to pay a fee to media outlets when they sell advertising alongside news content. A fund would be created to which technology companies would contribute, and the money would be distributed to media outlets based on the number of journalists they employ. Publishers would be required to use 70% of the funds they receive to pay journalists in California. The bill does not specify an amount for the fund, leaving it up to the parties to reach an agreement.
Google, which is paying into a similar fund in Canada, testified against the California proposal during a hearing where news executives expressed support for the bill while tech industry lobbyists opposed it. Google proposed a different method of supporting journalism through specific programs funded by more companies than just the largest platforms. The current version of the bill would only apply to Google and Meta, the parent company of Instagram and Facebook.
Assemblywoman Buffy Wicks, the bill’s author, stated that she is actively engaging with companies that oppose the bill to hopefully reach a compromise that benefits the news industry. She highlighted the role of journalism in exposing issues that lead to legislative action, such as extending the statute of limitations on sexual abuse lawsuits after a Times investigation. The bill now moves forward to the Senate Appropriations Committee and will head to Governor Gavin Newsom if approved by both chambers of the Legislature by August 31.
Overall, the California Journalism Preservation Act aims to find a solution to support credible journalism and address the challenges faced by the news industry in the digital age. The ongoing discussions between legislators, news publishers, and tech companies indicate a potential compromise that could benefit all parties involved in ensuring the sustainability of journalism in California.
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https://www.latimes.com/california/story/2024-06-25/will-google-strike-a-deal-with-california-news-media-to-fund-journalism