The tech giant is objecting to a proposed law that would mandate large online platforms to pay a ‘journalism usage fee’
Google has temporarily prevented links from local news outlets in California from showing up in search results. This action comes in response to a bill that would require tech companies to pay publications for shared article links. However, this change only affects certain users in California, and the exact number is unclear.
The California Journalism Preservation Act (CJPA) proposes that large online platforms pay a “journalism usage fee” for linking to news sites in California. The bill was approved by the California Assembly in 2023. For it to become law, it must also pass in the Senate and be signed by Governor Gavin Newsom.
In a blog post released on Friday, Jaffer Zaidi, Google’s head of global news partnerships, revealed that the company was testing the removal of local news links for a “small percentage” of California users in anticipation of the bill’s potential passage.
“We don’t make these decisions lightly and aim to be transparent with California publishers, lawmakers, and our users,” he stated. “To prevent a scenario where everyone loses and the California news industry suffers, we encourage lawmakers to consider a different approach.”
Google will halt “further investments in the California news ecosystem,” the blog post mentioned, removing California publications from its Google News Showcase. This feature presents stories to users in a simplified feed to enhance traffic to publishers.
In May 2023, Meta stated that it would need to remove news content from Facebook and Instagram in response to the California legislation, “rather than pay into a slush fund that primarily benefits big, out-of-state media companies.” The company has not acted on these statements yet and did not respond immediately to a request for comment.
The purpose of the California bill is to aid the local journalism industry, which has suffered significant losses in recent decades, partly due to the emergence of social media and other online news sources. However, advocates for media equity argue that the legislation is misdirected and could favor larger publishers over smaller outlets, which are experiencing more severe effects.
According to a study by Free Press Action, a media-reform advocacy group, conducted in November, over 80% of the websites that would receive reimbursement under the bill are owned by only 20 major firms. The study indicates that media conglomerates such as News Corp and Gannett would profit from the proposed measure. As a result, major social media companies have strongly opposed the legislation through heavy lobbying efforts.
Mike Rispoli, senior director at Free Press Action, remarked, “It’s a Google versus corporate media fight, and ultimately, California residents are the ones suffering. This highlights the significant challenges local news is currently facing, with the creation and access to news being controlled by large corporations primarily focused on their own interests.”
The California bill is the most recent example of efforts to hold big tech firms accountable for their effects on news publishers. Meta, the parent company of Facebook, and Alphabet, Google’s parent company, have faced similar challenges in Australia and Canada. The situation escalated in Canada when Meta shut down news services in the country in 2023 during a wildfire crisis. The block on news links in Canada remains in effect.
Meta has further reduced its news services in Australia following the passage of a 2021 bill that mandates social media firms to compensate publishers for shared content. In March, the company intensified its conflict with lawmakers by announcing it would cease payments to publishers for content in Australia.
Similar legislation is under review in Illinois. The Journalism Preservation Act, introduced in February 2024, would compel social media firms to pay a fee based on the frequency of their links to news outlets’ content each month.
