SACRAMENTO (KNX) - A new measure being considered in the California Assembly could force big tech companies like Google and Meta to pay media outlets for sharing and using their news content.
The California Journalism Preservation Act (AB 886) would mandate that online platforms pay a “usage fee” to news organizations when they sell ads alongside their content. It also prohibits tech companies from retaliating against news outlets that demand payment under the Act by excluding the outlet’s content from their platforms.
The bill’s author, Assemblymember Buffy Wicks of Oakland, says it’s an attempt to save local journalism.
“It’s not that no one reads or watches news anymore, it’s that dominant tech platforms, both search engines and social networks, have such unrivaled market power that newsrooms are coerced to share the content they produce, which the tech companies sell advertising against, providing almost no compensation in return,” Wicks said.
Supporters say the bill would provide a lifeline to news organizations that have lost ad revenue in the digital era. But opponents say the mandate is unconstitutional, and could reward clickbait content and limit the ability for online platforms to combat misinformation.
Similar revenue-sharing legislation is being considered in Canada. In response, Google is testing a feature to block Canadian users from viewing news content. Meta also said it would end news access for Canadians on its platforms if the act passes in its current form.
The bill cleared the Assembly Judiciary Committee with bipartisan support, and is now headed to the full Assembly.
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