The California Journalism Protection Act would require platforms to compensate organizations through a ‘journalism usage fee.’
Newsrooms across the country have withered while the stories they produce at great costDespite bipartisan support, attempts to make those companies share advertising dollars with news publishers have sputtered in Congress.
According to the California News Publishers Association, which is sponsoring Assembly Bill 886, and to which the Southern California News Group belongs, 52% of California residents get their news through Facebook and 49% from Google. Those two Silicon Valley companies – divisions of Meta Platforms and Alphabet Inc., respectively – gobble 60% of all digital ad dollars thanks to their ability to collect consumer data.
The California bill takes a different approach. Since states cannot carve out exemptions to federal antitrust law, AB 886 would require tech platforms to directly compensate publishers with a “journalism usage fee” based on the amount of advertising revenue the platform receives from displaying a publication’s content.
What the formula would be for compensating news publishers, Wicks said, is “what we’ll have to figure out through the policy process.”: that it would boost profits for owners of large news organizations without putting more money into their newsrooms. Her bill would require news publishers to spend 70% of the revenue received under its provisions on journalists and news production.
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