In the latest attempt by legislators to rein in Silicon Valley, a measure has been introduced in California that would force tech companies such as Facebook and Google to pay publishers for news content from which their platforms profit.
The California Journalism Competition and Preservation Act, announced by Assemblymember Buffy Wicks on Monday, if approved, would direct digital advertising giants to pay news outlets a “journalism usage fee” when they sell advertising alongside news content. Additionally, the bill would require publishers to invest 70% of the profits from that fee in journalism jobs.
The California measure is similar to a federal bill introduced last year that would allow publishers to collectively bargain for payments from tech companies that have news content on their platforms.Wildly profitable tech companies are citing an as-yet notional recession to make deep workforce cuts. They may have another agenda.
Wicks said she wanted to improve on the federal legislation, which went the route of altering antitrust laws, to be more inclusive of smaller newspapers and focus on the basic issue of paying publishers for content. Wicks was inspired by the success of similar legislation passed in Australia in early 2021, which led to digital platforms paying nearly $140 million to Australian news organizations in its first year, according to theOne Australian publisher estimated tech money could fund up to 30% of editorial salaries, the CJR reported.
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