Journalism Preservation Act, which would require Google and Meta to pay for news, survives important hearing
A bill that would require Google and Facebook-owned Meta to pay publishers for the news presented on their platforms passed unchallenged by the state legislature, where legislative initiatives often fall by the wayside.
U.S. Assembly Bill 886 would require the tech giants to pay agreed-upon annual flat fees into a fund for news organizations or to enter into mediation or arbitration and negotiate to pay media companies a share of their digital advertising revenue.
On Thursday, the bill survived the infamously deadly suspense hearing before the state Senate Budget Committee by a vote of 4 to 2, with Republican senators voting no.
Often, most of the bills included in the suspense file expire quietly.
Negotiations over AB 886, involving news publishers, tech industry representatives and lawmakers, continue as the Aug. 31 deadline for lawmakers to pass the bill approaches, according to the office of Buffy Wicks, East Bay Assembly member and author of the bill.
If passed, Governor Gavin Newsom would have to sign or veto the bill by September 30.
A spokesman for Newsom said this week that he would “evaluate this bill on its merits should it land on his desk.”
The bill, co-authored by Reps. Bill Essayli, a Republican from Riverside, and Josh Lowenthal, a Democrat from Long Beach, was passed by the State Assembly in June 2023.
Many newspaper publishers and some politicians blame Google and Meta for the thousands of newspapers that have closed in the U.S. since 2005. As news and advertising moved online and the major internet platforms attracted huge audiences, publishers were essentially forced to allow their content on the platforms without receiving “little or no compensation” in return, Wicks said.
According to eMarketer, Google generates 28% of global digital advertising revenue, closely followed by Meta at 23%.
Researchers at Columbia University and the University of Houston published a study in November estimating Google’s revenue from search results in news media at $21 billion a year. Meta generates nearly $4 billion annually from news in U.S. Facebook feeds, the researchers said.
The California News Publishers Association – of which the news organization is a member – pointed out this week that a federal judge ruled last week that Google has an illegal monopoly on internet search. News reporting makes up 40 to 60 percent of Google’s search results, said the group’s lead attorney, Brittney Barsotti. The group blames Google and Meta’s market dominance for the decline of news media, the rise of misinformation and the “lack of credible and independent government oversight bodies in our state’s communities.”
Meta said the vast majority of Facebook users do not visit the platform to consume news and political content, and that news on Facebook and Instagram “does not generate meaningful value for our users or our company.”
At a hearing in the California legislature in June, Jaffer Zaidi, Google’s vice president of global news partnerships, claimed that AB 886 was based on a “flawed premise” that internet platforms use news for profit without compensation. Google Search sends “billions of visits” to the websites of news publishers of all sizes every day, providing them with “valuable free traffic,” Zaidi said.
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