The California Journalism Preservation Act (CJPA) currently being reviewed by the California legislature proposes a “link tax” that would compel Google to pay for merely directing users to news articles in California. This approach to supporting journalism is deemed flawed and could have significant repercussions on the services provided to Californians and the traffic directed to California publishers.
The CJPA could disrupt the practice of assisting people in discovering news stories, which has been beneficial for publishers of all sizes without any cost to them. This bill is seen as favoring large media conglomerates and hedge funds that have advocated for it. There are concerns that these entities may exploit CJPA funds to acquire local California newspapers, lay off journalists, and produce content of questionable quality through understaffed operations, essentially creating “ghost papers.” Small publishers could suffer, and the diverse local media landscape might be compromised as a result of CJPA.
The unrestricted financial risks associated with CJPA would be impractical if implemented. The current form of CJPA would introduce a level of business uncertainty that is unsustainable for any company. As a precaution against potential CJPA consequences, a short-term test involving a subset of California users is being conducted. This trial includes the removal of links to Californian news sites possibly impacted by CJPA to assess the legislation’s effects on user experience. Further investments in the California news ecosystem, including Google News Showcase partnerships and expansions, are on hold until the regulatory landscape in California becomes clearer.
Proposing a Different Approach
It is emphasized that CJPA undermines the news industry in California. The decisions made are not taken lightly, and transparency is sought with California publishers, legislators, and users. To prevent a scenario where everyone loses, and the Californian news sector deteriorates, lawmakers are urged to consider an alternate strategy.
Google has played a substantial role in supporting news publishers for over two decades, guiding them through digital transformations and fostering innovation. Initiatives like Google News Showcase, operating globally, and collaborations through the Google News Initiative have benefited numerous publishers, including those in California.
These investments aim to assist journalists and news outlets in adapting to evolving content consumption trends, such as short-form videos, newsletters, and social media. Despite the decreasing news-related queries on Google Search, efforts to empower the news ecosystem continue. CJPA, in its current form, threatens to halt these endeavors.
Ongoing discussions with Californian stakeholders have led to proposed alternatives to CJPA, advocating for a cooperative approach between the state government and private enterprises to sustain a healthy news industry. Support strategies must be equitable, inclusive, and not detrimental to smaller publishers, emphasizing the importance of an open web for news dissemination.
Future engagements will center on exploring alternative solutions with lawmakers to maintain the connection to news and uphold support for the Californian news ecosystem.
