California Lawmakers Set to Scrap Legislation Requiring Big Tech to Pay for News in $172.5 Million Google Settlement | Report

The potential deal doesn’t sit well with some journalism advocates, who call it a “ratification of Google’s monopoly”

California State Capitol Building (Credit: Arturo Holmes/Getty Images)
California State Capitol Building (Credit: Arturo Holmes/Getty Images)

State lawmakers are preparing to ditch proposed legislation that would require big tech companies to pay for California-based news outlets’ content in favor of a $172.5 million payout from Google that, matched with $70 million in state taxpayer money, would be used to fund local journalism outlets and boost AI innovation over the next five years, according to media reports.

The $242.5 million deal would scuttle two bills working through the California legislature, according to Sacramento station KCRA 3, which cited multiple anonymous sources. Journalism advocates criticized the potential deal as a “ratification of Google’s monopoly” on distributing news.

The settlement would generate $45 million for local newsrooms in its first year, according to the repot. On the AI front, Google has also committed to $12.5 million for the term with hopes that other companies like Amazon and Meta will come to the table, while OpenAI has also to contribute technology.

The deal doesn’t have many California journalists jumping for joy. The Media Guild of the West released a bulletin Sunday warning of the agreement:

“There’s a flashy high number attached to this proposed settlement. Don’t buy it,” the bulletin read. “Much of the proposed funding would be spread out across five years, with many funds going toward a vague AI accelerator project.”

The message continued later, “Bottom line: This isn’t regulation. It’s a ratification of Google’s monopoly power over our newsrooms.”

Media Guild of the West president Matt Pearce also took to his social media to call out the new deal.

“California’s journalists did not ask for this,” he said.

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