One day after Meta threatened to pull all news from Facebook and Instagram if it is signed into law, the California Assembly voted on the California Journalism Preservation Act.
The CJPA would require major tech companies such as Google and Meta to pay a usage fee in the form of a percentage of ad revenue generated by displaying news articles from local journalists.
The bill received a 46-6 vote in favor and now proceeds to the state Senate, where it is expected to undergo amendments.
The specific percentage tech companies would have to pay is yet to be calculated and would be done through arbitration. Additionally, online publishers receiving these usage fees would be required to allocate at least 70% of the funds toward journalists and support staff.
In their warning to legislators, Meta spokesperson Andy Stone tweeted, “If the Journalism Preservation Act passes, we will be forced to remove news from Facebook and Instagram rather than pay into a slush fund that primarily benefits big, out-of-state media companies under the guise of aiding California publishers.”
On the other hand, the News/Media Alliance, a supporter of the bill, celebrated the Assembly’s vote, stating that the current compensation for creators of journalistic and creative content does not adequately reflect the investment required to produce their work. The organization believes that the bill will encourage the hiring of more journalists.
A similar bill, the Journalism Competition and Preservation Act, was reintroduced to US Congress in April by Sen. Amy Klobuchar (D-MN) and Sen. John Kennedy (R-LA). The federal bill proposes granting an antitrust exemption to news organizations with fewer than 1,500 employees, allowing them to engage in discussions with online platforms.
