A bill in California that aimed to compel tech giants like Facebook and Google to pay publishers for news content has been postponed until 2024. The California Journalism Competition and Preservation Act, sponsored by Assemblymember Buffy Wicks, D-Oakland, proposed that digital advertising giants should pay news outlets a “journalism usage fee” whenever they sell advertising alongside news content. Additionally, the bill mandated that publishers should allocate 70% of these funds to preserve journalism jobs within the state of California. After receiving bipartisan support in the Assembly and progressing to the state Senate, the bill’s hearing, initially scheduled for July 11, has been rescheduled to 2024, allowing for further legislative deliberation.
Exploring the Future of Journalism Support
To gain a deeper understanding of the issues addressed by the bill and to gather insights from successful legislations in other countries, Senator Tom Umberg, D-Santa Ana, plans to hold an informational hearing in the fall. This hearing aims to protect journalism, California journalists, and the public’s access to a free and vibrant press, which are essential to maintaining a healthy democracy. Senator Umberg emphasizes the importance of enacting fair legislation that specifically benefits local journalists and all Californians. By taking the time to explore these matters, the Legislature seeks to ensure the development of comprehensive and effective policies.
The California Legislature operates in two-year sessions, allowing bills introduced in the first year to carry over to the second year. However, for a first-year bill to be extended, it must pass its house of origin by January 31 of the second year. While there is no guarantee that the bill will be taken up again, it has already garnered significant support from news advocacy groups such as the California News Publishers Assn. and the News/Media Alliance. Notably, the Los Angeles Times, a member of both organizations, also backs this proposed legislation. On the other hand, the bill has faced strong opposition from various trade groups within the tech industry, including Facebook parent company Meta. Meta has even threatened to remove all news content from Facebook and Instagram if the bill is passed.
Meta’s opposition to such a bill is not unprecedented. In February 2021, a similar bill was passed in Australia, requiring Google and Meta to compensate journalism outlets for their content. In response, Facebook temporarily blocked publishers and users from sharing news links on its platform. However, after the Australian government made some modifications to the News Media Bargaining Code, Facebook restored news content a few days later. Furthermore, on June 22, Meta announced its decision to withdraw access to news on Facebook and Instagram in Canada following the passing of a law that mandated digital platforms to pay publications for their content. Prior to the bill taking effect, Meta confirmed that it would remove news content for Canadians within six months. Google also stated its intention to exclude Canadian news sites from search results.
The California bill proposing that tech companies compensate publishers for news content has been delayed until 2024, allowing for further consideration and exploration of the topic. The Legislature aims to create legislation that not only protects journalism but also ensures fairness and benefits local journalists and the public. While the bill has received support from news advocacy groups, it faces opposition from tech industry trade groups and Facebook parent company Meta, which has previously taken action against similar legislation in Australia and Canada. The ultimate outcome of this bill remains uncertain, but the discussions and debates surrounding it highlight the evolving relationship between tech companies and news publishers.
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