Google has recently come to an agreement with California to provide funding to journalism organizations and accelerate the development of artificial intelligence. However, some critics argue that the settlement is letting Google off easy and shifting the financial burden to taxpayers.
The agreement has replaced the California Journalism Preservation Act, which was proposed by Assemblymember Buffy Wicks, D-Oakland. This act would have mandated tech companies to pay fees to news organizations for using their content. Google contended that the legislation was unconstitutional and went against the principles of the open internet.
As a compromise, lawmakers negotiated an arrangement for Google to pay fixed fees to a News Transformation Fund, which will be overseen by the UC Berkeley Graduate School of Journalism. Additionally, this fund will be supplemented by contributions from state funds, subject to approval by the legislature and governor on an annual basis.
A board comprising members from various news organizations will determine the allocation of funds based on the number of journalists employed by each publication.
“This partnership represents a cross-sector commitment to supporting a free and vibrant press, empowering local news outlets up and down the state to continue their essential work,” stated Wicks.
Despite the positive outlook from some, the Media Guild of the West, representing the LA Times and other California newspapers, expressed strong opposition to the settlement. The guild labeled it a “shakedown” resulting from secretive negotiations.
State Senator Steve Glazer, D-Orinda, criticized the agreement, emphasizing that it preserves tech monopolies and provides inadequate support to local journalism. He also pointed out the absence of Amazon and Meta from the deal.
So how do tech platforms take advantage of news producers? Google argues that by driving traffic to news websites, it provides a valuable service to news organizations. However, this relationship can often be exploitative, with tech giants profiting from news content without appropriate compensation.
This exploitation has contributed to a decline in revenue for news organizations, leading to substantial job losses and the closure of independent news outlets. This trend has significantly impacted government oversight and civic engagement.
While the financial breakdown of the settlement is somewhat ambiguous, the agreement aims to provide approximately $250 million in public and private funding over the next five years. The first year is expected to see significant funding from both Google and the state, with ongoing support planned for subsequent years.
Additionally, a National AI Accelerator program is set to receive $62.5 million as part of the agreement. Critics are concerned about the implications of this initiative on journalism jobs.
For more information on the settlement, you can refer to articles by CalMatters and SiliconValley.com.
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The Sacramento Report, published every Friday, is in partnership with CalMatters. Contact me at deborah@voiceofsandiego.org if you have tips or questions to share.
