Google is making waves in California by removing links to news websites in response to proposed legislation that would require tech companies to pay news outlets for their content. The California Journalism Preservation Act, introduced in March 2023, aims to ensure that digital platforms like Google and Meta compensate news outlets when using their content alongside digital ads.
The move by Google, which affects only a small percentage of California users, is seen as a “test” to gauge the impact of the legislation on their product experience. However, State Senate President Pro-Tempore Mike McGuire criticized the action as “bullying” and an “abuse of power,” calling on Google executives to answer for their decision.
Lawmakers and proponents of the bill argue that tech giants benefit financially from sharing content from small and local news publishers without adequately compensating them. The president and CEO of the California News Publishers Association accused Google of suppressing California news and emphasized the need for policymakers to take action.
Google has long been against what it calls a “link tax,” arguing that the financial exposure created by the proposed legislation would be unworkable. The company has faced similar challenges in other countries like Canada and Australia, where it eventually reached agreements with news media organizations to compensate them through alternative means.
As the debate continues, the future of news content sharing between tech companies and news outlets remains uncertain, with stakeholders on both sides advocating for fair compensation and business practices.