Google threatens newspapers again

A BILL before the California state legislature in the US, entitled the Journalism Preservation Act, would compel internet platforms such as Google and Facebook to pay news outlets for use of what they publish. Axios reports that Google has threatened to “pause” Google News Initiative funding and Google News Showcase payments in response.

The bill does not mandate payments to actual journalists. In this it follows the example of Australia and Canada. See the update below for news from Canada.

The current text of the Californian Bill does provide that "An eligible digital journalism provider shall thus spend at least 70 per cent of funds received pursuant to this title on news journalists and support staff employed" (our emphasis) by it, except that one "with five or fewer employees shall spend at least 50 per cent of funds received". It applies only to digital journalism providers with annual revenue over $100,000 or having an ISSN or having the US equivalent of charitable status (under section 501(c)3 of the Internal Revenue Code).

Payment would be due from large internet platforms, for example those with at least 50,000,000 United States-based monthly active users. The amount would be set by arbitration. A platform from which payment is claimed "shall not retaliate against an eligible digital journalism provider for asserting its rights under this title by refusing to index content or changing the ranking, identification, modification, branding, or placement of the content of the eligible digital journalism provider on the covered platform".

Google News Showcase is the online advertising giant's scheme to pay news publishers of its choosing. The Google News Initiative offers training and other support to journalists and publishers - including training in using Google products. London Freelance Branch awaits a response from the NUJ's National Executive Committee to a motion passed at the Union's last Delegate Meeting requiring a consultation of the membership on continued NUJ involvement with the Initiative.

The Freelance has long argued that the Google News Initiative is at best a public relations exercise in the corporation's fight to avoid being made to pay for the news it uses.

Meta (of course) threatened in 2023 to bar news stories from Facebook and Instagram if the bill passes.

There’s more...

As we were proofreading this, news arrived that a £13.6 billion claim against Google alleging anticompetitive behaviour in selling and placing ads has permission to proceed at the Competition Appeal Tribunal in London.

Meanwhile, back in California, in January the Freelance Worker Protection Act was introduced. Supported by the US National Writers Union, its benefits to freelances would include the right to a contract, the right to be paid within 30 days of the conclusion of the work, and the right to damages for non-payment, set at double the amount withheld. If it passes, California would be the second state after New York to offer such protection; between them they would probably cover the majority of freelance journalists and cultural workers.

16 June 2024

Meanwhile in Canada...

ON 7 JUNE Google announced that it had signed off on a deal, first announced in November, to pay Canadian news publishers $100 million a year (US$80 million; £57 million). This meets its obligations under the country's Online News Act.

Details new to us include the money being distributed though a body called the Canadian Journalism Collective, set up for the purpose. About 1500 news outlets have applied for cash. It will be distributed in relation to the number of journalists they employ: the Canadian Heritage Department says that small print and digital outlets can expect about $17,000 (£9700) per journalist.

Notably, Google in Canada seems to be complying with the letter of the law rather than, as it has elsewhere, emitting a smokescreen of Google News Initiative funding and Google News Showcase payments - disbursed at its choosing.

Edward Hasbrouck, an activist in the US National Writers Union, comments: "it is noteworthy that Google can pay news publishers US$12,000 per full-time staff journalist, without changing its business model or profitability. This is a measure of how much Google has been, and still is, stealing form journalists in all countries by copying and distributing news without paying for it."

Facebook is still holding out and blocking news postings in Canada.

© Mike Holderness