On Wednesday, Google and California lawmakers reached a landmark agreement aimed at revitalizing the state’s struggling newsrooms and halting a proposed bill that would have required tech giants to pay for news content distribution. However, the deal has been met with strong criticism from journalist unions, who have labeled it a “disaster.”
Under the agreement, Google will contribute $250 million over the next five years, with a significant portion allocated to funding California newsrooms. Additionally, the deal includes the creation of an artificial intelligence “accelerator” to aid journalists. This initiative comes as a response to the California Journalism Preservation Act, a bill championed by state assemblymember Buffy Wicks, which sought to impose fees on tech companies like Google (GOOGL) and Meta (META) for sharing news content. This bill was modeled after similar legislation in Australia and Canada aimed at supporting local news organizations struggling due to the dominance of tech platforms.
Assemblymember Wicks praised the deal, stating, “As technology and innovation advance, it is critical that California continues to support the vital role of journalism in our democracy. This partnership represents a cross-sector commitment to ensuring a free and vibrant press.” Governor Gavin Newsom also endorsed the agreement, calling it a significant step in bolstering local journalism without imposing new taxes on Californians.
Despite the positive remarks from state leaders, the deal has faced backlash from journalist unions and some lawmakers. The Media Guild of the West and The NewsGuild-CWA criticized the agreement, accusing the state of making a deal that undermines the future of journalism. They argue that the negotiations were conducted without adequate input from journalists and that the agreement fails to address the industry’s severe financial challenges.
State Senator Steve Glazer, who had proposed an alternative bill offering tax credits to news outlets with full-time journalists, criticized the deal for its insufficient support. He argued that Google’s contribution falls short of what was promised in Canada and does not adequately address the needs of local news reporting.
California State Senate President Pro Tempore Mike McGuire also voiced concerns, suggesting that the agreement lacks sufficient funding for newspapers and does not fully tackle the inequities within the industry.
The deal follows Google’s decision to block news content in California earlier this year in response to the proposed law, which drew widespread criticism from local news outlets.
The News/Media Alliance has since requested investigations into whether Google’s actions violated any laws by limiting news access. In Canada, Google has agreed to a similar funding arrangement under the Online News Act, committing $74 million annually to support news publishers.
Media Guild of the West President Matt Pearce emphasized the significance of fair compensation from tech monopolies, stating, “When journalism depends on platforms like Google, those platforms must contribute fairly to the costs of producing news.”
