Facebook and Instagram parent company Meta announced it would block news stories in California if the state passes its “California Journalism Preservation Act.” The bill requires Big Tech companies to pay news publishers for using their content.
Google and Facebook have been in a constant fight with lawmakers and news publishers over paying for the content they show to users. The companies argue that they don’t need to pay for the content because they’re funneling users to the publisher’s website for free. On the other hand, publishers and their advocates claim that journalism is dying because of the free usage of content, and they need compensation to make up for their losses.
California is now one step closer to passing a bill that obligates Facebook and Instagram to pay news publishers. The California Journalism Preservation Act essentially wants a 70% cut from the money online platforms make from showing users news content. The collected money would benefit local newsrooms dealing with declining revenues.
Facebook and Instagram are against paying news publishers in California
In response, Meta threatened that it would block news stories in California if lawmakers pass the bill. The company argued that the bill would assist the out of California websites more than websites located in the state.
“If the Journalism Preservation Act passes, we will be forced to remove news from Facebook and Instagram, rather than pay into a slush fund that primarily benefits big, out-of-state media companies under the guise of aiding California publishers,” Andy Stone, a spokesman for Meta, said. Meta spokesman continued that the bill would force the company to “pay or remove the news.”
On the contrary, the bill sponsor Buffy Wicks believes such bills would act like a “lifeline” for the local news organizations with plunged advertising revenues. “As news consumption has moved online, community news outlets have been downsized and closing at an alarming rate,” Wicks added.
Danielle Coffey, executive vice president of the News Media Alliance trade group, also defends the idea of forcing Big Tech into paying local newsrooms. He called Meta’s threat “undemocratic and unbecoming.”
Google already had a similar case in Europe, but it was finally forced to settle with over 300 publishers throughout the continent. It remains to be seen if Meta would bow down to the bill. However, paying Californian news organizations could lead to more states designing a similar bill and asking Meta to pay their local newsrooms.
2023-06-02 15:13:17