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According to Google, only 2% of online search queries are related to news, as people seek information from podcasts, newsletters, and short videos.
Google on Friday tested removing links to California news sites for some users in western states as Congress considers making online search giants pay to connect people with news. It was announced that
Silicon Valley tech companies are preparing for the passage of the California Journalism Protection Act (CJPA), which would create a “link tax” to connect users in the state to news stories, according to Google Global News Partnerships. Vice President Jafar Zaidi said in a blog post. post.
The CJPA was passed by the California State Assembly last June and is currently being considered in the state Senate.
“As we shared when other countries considered similar proposals, the uncapped financial exposure that the CJPA would create would not be viable,” Zaidi argued.
“If enacted, the CJPA in its current form would create a level of business uncertainty that is unacceptable to any company.”
Meta, the owner of Google and Facebook, has pushed back against efforts in other jurisdictions to compensate news organizations for stories published on its platforms.
In 2021, Facebook briefly blocked news articles on its site in Australia after a similar law was passed and before the company and Google struck a deal to reward news publishers.
In France, an agreement was reached in 2022 between Google, publishers and news organizations to allow news content to be displayed on the company’s platform.
And in November, after months of negotiations, Canada and Google signed an agreement in which the world’s No. 1 online advertising company will pay Canadian media companies $100 million a year in compensation for lost advertising revenue.
Supporters of such laws argue that big tech attracts users with news stories and hogs online advertising dollars that would otherwise flow to struggling newsrooms.
Zaidi said Google’s case will include removing links to news websites that may be subject to the bill, in order to gauge the impact on the platform.
Only 2% of Google search queries are news-related, Zaidi said, as people increasingly get their news from short-form videos, newsletters, podcasts and social media.
Google will also suspend investment in California’s news “ecosystem” until regulators’ plans are clear, Zaidi added.
“California’s healthy news industry requires support from both the California government and the broader private sector,” Zaidi said.
