California Considers Charging Google, Facebook A 'Journalism Usage Fee'

By Ria Roebuck Joseph | Center Square contributor, The Center Square California

March 23, 2023

(The Center Square) - California State Assemblymember Buffy Wicks (D-Oakland) has proposed a bill that would require media platforms like Google and Facebook to pay news publishers a “journalism usage fee” if they use local news content alongside advertising.

Wicks said, “These dominant digital ad companies are enriching their own platforms with local news content without adequately compensating the originators. It’s time they start paying market value for the journalism they are aggregating at no cost from local media.”

But fees paid as required by the bill do not go to journalists who produce the work, instead, the bill requires 70% of collected funds to be used for investment in journalism jobs. This legislative subsidy in AB886, the California Journalism Preservation Act (CJPA), will be up for consideration this session.

A statement released by Wicks’ office notes that preserving local news providers was more important than “who pays and who gets paid.”

“The rise of digital media and technology has transformed the way we access our news and entertainment. It’s also had a devastating impact on print publishing industries,” a report by the Census Bureau stated. “Many Americans may not remember the last time they stopped by a newsstand to pick up a magazine or newspaper.”

“The CJPA provides a lifeline for news outlets – large, small and ethnic – by directing a portion of the ad dollars back to the print, digital, and broadcast media that bear the entire cost of gathering and reporting local news while Big Tech bears none,” said Wicks.

The released statement noted “...community news outlets have been downsizing and closing at alarming rates. By driving more digital ad revenue to local outlets and requiring investments in journalism jobs, AB 886 will produce a more stable news ecosystem, especially in smaller and ethnic communities. “

Wicks' fight to preserve news outlets that are already in decline may be short-lived. The Pew Research Center notes that while TV remains the number one source of news, it is quickly losing ground to the younger generation who prefer to get news online. Data revealed that platforms have attracted consumers who prefer to read the news than watch it. The decline may well be an indication that some community outlets no longer have a market for their product and consumers have moved on to other sources for their news.

The bill has found support with the News/Media Alliance (NMA) a Washington D.C based non-profit, which lists “new revenue streams” as one of their focus areas.

“We applaud California Assemblymember Wicks for introducing this legislation and for recognizing the critical importance of high-quality journalism to ensuring informed and engaged communities. We hope Congress takes note and follows suit by reintroducing legislation at the federal level as well to give news publishers across the U.S. the same ability to be fairly compensated by the dominant tech platforms,” News/Media Alliance Executive Vice President & General Counsel, Danielle Coffey said.

CJPA also has the support of the California News Publishers Association (CNPA) which “carries a torch for the California newspaper industry.”

“Big Tech has become the de facto gatekeeper of journalism and is using its dominance to set rules for how news content is displayed, prioritized, and monetized,” Emily Charrier, CNPA Chair, said. “Our members are the sources of that journalism, and they deserve to be paid fair market value for news they originate.”

“Studies have shown that communities without local journalism suffer consequences ranging from declining civic engagement and lower voter turnout to higher taxes and increased public corruption,” Wicks noted. “In that sense, legislators from virtually every corner of the state have a vested interest in ensuring that quality local journalism is preserved. AB 886 is an important step in that direction.”

The focus of the work of The Center Square California is state and local-level government and economic reporting that approaches stories with a taxpayer sensibility.