In response to proposed state legislation in California that would require big tech companies to pay news outlets for their content, Google announced that it is removing links to California news websites in a blog post on Friday. This move is intended as a “test” to gauge the impact of the legislation on their product experience. The California Journalism Preservation Act, introduced in March 2023, would require digital platforms like Google and Meta to pay a “journalism usage fee” to eligible news outlets when using their content alongside digital ads.
Lawmakers and proponents of the bill argue that tech giants make money by sharing content from small and local news publishers without adequately compensating the originators. Charles F. Champion, the president and CEO of the California News Publishers Association, accused Google of suppressing California news, stating that one company should not have the power to shut down how the public finds online content. Google has long been against what it calls a “link tax,” arguing that the financial exposure created by the California Journalism Preservation Act would be unworkable and create uncertainty for any company.
Google has pushed back against similar legislation in other countries, such as Canada and Australia. In response to a bill passed in Canada in June 2023, Google threatened to remove links to Canadian news from their search platforms. Similarly, in 2021, Google threatened to stop making Google Search available in Australia if the proposed legislation requiring platforms to compensate Australian news outlets for using their content became law. Ultimately, Google reached voluntary commercial agreements with news media organizations in Australia and continued to provide traffic to Canadian publishers while working through the details with the government.
California State Senate President Pro-Tempore Mike McGuire criticized Google’s move as an act of “bullying” and an “abuse of power,” calling on Google executives to answer for their actions. The bill aims to address concerns about news aggregation practices by tech companies that have led to a decline in traffic for news websites. Google’s Vice President of Global News Partnerships, Jaffer Zaidi, stated that the company would be unable to accept the level of business uncertainty created by the California Journalism Preservation Act in its current form. Despite Google’s opposition to the legislation, proponents argue that it is time for tech companies to start paying market value for the journalism they aggregate at no cost from local media.
The California Journalism Preservation Act is still awaiting a hearing by the state’s Senate Judiciary Committee, and Meta has not yet commented on the proposed legislation. Google’s decision to remove links to California news websites has sparked controversy and criticism from lawmakers, news publishers, and industry observers. The debate over whether tech companies should be required to pay for news content continues to be a contentious issue, with implications for the future of digital journalism and the relationship between platforms and publishers.
