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Headline Roundup August 22nd, 2024

Google, California Agree to Newsroom Funding Deal

Summary from the AllSides News Team

After months of negotiation, California lawmakers finalized a $250 million public-private partnership with Google to fund local newsrooms, in place of a proposed bill. Most journalism groups criticized the deal, particularly its inclusion of an artificial intelligence program.

Key Quotes:

  • “The California legislature embarked on an antimonopoly expedition,” Media Guild of the West president Matt Pearce told The Seattle Times (Center bias), “but now we’re looking at an unenforceable public-private partnership where taxpayers are more on the hook for funding local newsrooms than a literal monopoly whose own contributions appear to be tax-deductible.”
  • “I think I’m dealing with the art of the possible,” said Buffy Wicks, a Democratic state legislator who proposed the original bill and led subsequent negotiations with Google. “This represents, to me, the best case scenario for the moment we’re in. And I would rather take a nearly quarter of a billion dollar deal than nothing.”

For Context: Canada passed a similar law last year, but that funding has yet to reach newsrooms. Google responded to Wicks' original proposed bill by removing links to California news sites for some users in the state, in what the company called a “test.”

How the Media Covered It: Many outlets left, right and center cast Google in a decidedly negative light. Breitbart (Right bias) ran a headline stating the bill would “force Google & Facebook to pay news orgs.”

Featured Coverage of this Story

Masters of the Universe: California Lawmakers Kill Bill that Would Force Google & Facebook to Pay News Orgs
Masters of the Universe: California Lawmakers Kill Bill that Would Force Google & Facebook to Pay News Orgs

Niharb/Flickr

News

California lawmakers have announced a deal that will kill a bill that would have forced tech giants like Google and Facebook to pay news organizations for their content. In exchange, the Silicon Valley Masters of the Universe will commit $250 million to fund newsrooms and an “AI accelerator.” The San Francisco Chronicle reports that the California Journalism Preservation Act, which aimed to impose fees on large digital platforms based on a percentage of their ad revenue, has been set aside in favor of a new partnership to support California newsrooms....

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Open on Breitbart News
California tried to make Google pay news outlets. The company cut a deal that includes funding AI
California tried to make Google pay news outlets. The company cut a deal that includes funding AI

Fred Greaves / CalMatters

News

California lawmakers are abandoning an ambitious proposal to force Google to pay news companies for using their content, opting instead for a deal in which the tech giant has agreed to pay $122.5 million to support local media outlets and start an artificial intelligence program. The first-in-the-nation agreement, announced today, promises $135 million for local journalism across California over the next five years, but represents a significant departure from the bill pushed by news publishers and media employee unions earlier this year. Instead of Google and Meta being forced to...

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Open on CalMatters
Google agrees to America’s first newsroom funding deal. It’s already unpopular.
Google agrees to America’s first newsroom funding deal. It’s already unpopular.

Spencer Platt/Getty Images

News

SACRAMENTO, California — Google has brokered a first-in-the-nation deal with California lawmakers to direct millions of dollars to local newsrooms, the latest in a series of global efforts to require tech companies to support the journalism they profit from.

California emulated a strategy that other countries like Canada have used to try and reverse the journalism industry’s decline as readership migrated online and advertising dollars evaporated. But the California agreement includes a novel – and controversial — element with funding earmarked for artificial intelligence, a technology that many journalists fear...

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