Google announced on Friday that it is removing links to California news websites in response to proposed state legislation that would require big tech companies to pay news outlets for their content. The move is described as a 'test' affecting only a small percentage of California users to assess the impact of the legislation on Google's product experience.
The California Journalism Preservation Act, introduced in March 2023 and awaiting a hearing by the state's Senate Judiciary Committee, aims to mandate digital platforms like Google and Meta to pay a 'journalism usage fee' to eligible news outlets when using their content alongside digital ads. This legislation comes amidst a shift in news consumption from traditional media to online and social platforms, raising concerns about news aggregation practices diverting users from news websites.
State Senate President Pro-Tempore criticized Google's action as 'bullying' and an 'abuse of power,' emphasizing the potential risk to public safety if critical information is denied to Californians. Lawmakers argue that tech giants benefit financially from content shared by small news publishers without adequate compensation.
The president of the California News Publishers Association accused Google of suppressing California news and called for immediate action by policymakers. Google has opposed what it terms a 'link tax,' citing concerns about the financial implications of the proposed legislation.
Alphabet reported $307.4 billion in revenue in 2023. Google previously reacted similarly to legislation in Canada and Australia, threatening to remove links to news content. In both cases, Google eventually negotiated agreements with news organizations to compensate them through alternative means.
Google's stance on the California legislation reflects its ongoing resistance to paying for news links, citing business uncertainty and financial exposure concerns. The company continues to engage in discussions with the Canadian government regarding the legislation passed in June 2023.
