Google is taking action against proposed California legislation that would require big tech companies to pay news outlets for their content by removing links to California news websites. The move is intended as a test to gauge the impact of the legislation on Google’s product experience, affecting only a small percentage of California users. The California Journalism Preservation Act would require digital platforms like Google and Meta to pay a “journalism usage fee” to eligible news outlets when they use 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 them. California State Senate President Pro-Tempore Mike McGuire has criticized Google’s move as an act of bullying and abuse of power, calling it a breach of public trust. The president and CEO of the California News Publishers Association, Charles F. Champion, also accused Google of suppressing California news and urged policymakers to take action.
Google has long opposed what it calls a “link tax” and has pushed back against similar legislation in other countries. The company expressed concerns about the financial uncertainty created by the California Journalism Preservation Act, stating that it would be unworkable in its current form. Google had a similar reaction to a 2021 Australian law that would require platforms to compensate Australian news outlets, initially threatening to stop making Google Search available in Australia if the law passed.
In response to the Australian legislation, Google eventually reached voluntary commercial agreements with news media organizations and paid publishers through its Google News Showcase instead of paying them for links. Similarly, the company said it would work through the exemption process with the Canadian government after a bill was passed requiring platforms to compensate Canadian news outlets. Google’s actions in reaction to such laws have sparked debates about the role of tech giants in the news industry and the financial compensation for news content used on their platforms.
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. The bill reflects concerns about the dominance of digital ad companies enriching their platforms with local news content without adequately compensating the publishers. Google’s removal of links to California news websites has drawn strong criticism from lawmakers and news publishers, highlighting the tension between tech companies and the traditional news industry over fair compensation for content sharing.
