In a significant setback for the California Journalism Preservation Act (AB 886), a bill that seeks to support news organizations by requiring Google, Meta, and other tech giants to pay for using their content, it has been postponed until next year. The bill, which had gained momentum after passing the Assembly, has faced strong opposition from major tech firms and will now not be heard in a state Senate committee as scheduled. This development comes as Google and Meta are also grappling with similar challenges in Canada and Australia, where they have threatened to remove news from their platforms.
The purpose of the California bill is to provide financial relief to traditional news outlets that have struggled to compete with digital advertising giants, despite their content being instrumental in attracting users to these platforms. State Sen. Tom Umberg and Assemblymember Buffy Wicks, the sponsors of the bill, have announced their decision to convert it into a two-year bill, with plans for a vote in committee in 2024 and an informational hearing this fall. Their primary concern is to ensure that the legislation is fair and that the benefits directly support local journalists and the preservation of a free and vibrant press, which is vital for democracy.
Though the bill has faced fierce opposition from big tech firms, Wicks maintains that support in the legislature remains strong. She points to the fact that despite Meta’s threat to remove news from Facebook and Instagram if the bill passed, it was still overwhelmingly approved by the Assembly. Wicks emphasizes the urgent need to address the plight of struggling newsrooms across the state, with over 100 publications closing in the past decade, while big tech continues to amass record profits from the content produced by publishers.
Wicks introduced the bill as a two-year legislative session to allow sufficient time for thorough deliberation. She clarifies that it is not intended to quietly fade away but rather to ensure that its provisions are carefully considered. However, the bill faced an unexpected hurdle when a scheduled hearing for the bill in the Senate Judiciary committee was canceled, indicating that not everything is proceeding as planned.
According to a bulletin from Insider Intelligence, Google and Meta collectively generate almost half of all digital advertising revenue worldwide. In contrast, newspaper advertising has declined by 66% over the past decade, accompanied by a 44% reduction in newsroom staff. These statistics underscore the urgency of ensuring a sustainable future for news outlets.
In response to the bill, Meta issued a statement criticizing it as a “slush fund” benefiting out-of-state media companies at the expense of California publishers. Google, on the other hand, expressed support for strengthening the news business in California but expressed concerns that the bill might disadvantage smaller publishers while favoring established ones.
It is worth noting that both Google and Meta have encountered similar challenges in Australia and Canada. In Australia, they initially blocked news pages but later struck deals with news companies, resulting in significant payments to various media businesses. These precedents may inform ongoing discussions around the California bill.
Despite the opposition and setbacks, the sponsors of the bill are committed to addressing concerns and ensuring a balanced approach. They welcome the participation of Google and Facebook in discussions to address their concerns and create a bill that benefits all publishers, irrespective of size, and safeguards the interests of California.
In conclusion, the California Journalism Preservation Act faces challenges and has been deferred until next year amid opposition from major tech firms. However, supporters remain resolute in their commitment to protect journalism and ensure a sustainable future for news outlets. Open to dialogue, they aim to address concerns and create legislation that supports publishers of all sizes while preserving the fundamental principles of a free press.
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