Facebook and Instagram's parent company Meta Platforms threatens to remove news content in its home state of California if the local government approves the proposed legislation California Journalism Preservation Act that forces tech companies to pay news publishers.
Removing News Content in CA
The California Journalism Preservation Act would require online platforms to pay a journalism usage fee to news publishers whose work appears on their services, which is an effort to reverse a decline in the local news sector. As a response, Reuters reported that Meta Platforms threatens to remove news content in its home state if this passes, rather than complying.
In a statement released by Meta Spokesperson Andy Stone, the company called the payment structure a "slush fund" and stated that the bill would benefit big media companies under the guise of aiding publishers in California. Many tech companies oppose proposals like these as it fails to take into account the value their platforms provide by distributing their news content.
The company's stand reflects its responses to a wave of regulatory proposals around the world, aiming to bolster the struggling news industry by requiring platforms to negotiate deals with publishers for shared content. Meta has threatened to pull news from its platform to similar proposals outside the country.
The Journalism Bill is sponsored by Assembly member Buffy Wicks, who already proposed several bills that target tech giants. Some of it was signed into law last year, including a bill that requires companies to vet their products and services for potential risk and harm to children before rolling out their products.
Wicks stated, "This threat from Meta is a scare tactic that they've tried to deploy, unsuccessfully, in every country that's attempted this. It's egregious that one of the wealthiest companies in the world would rather silence journalists than face regulation." CNN reported that the bill already cleared two key state committee votes, which will be followed by voting in the Assembly on Thursday.
Trade group NetChouce is planning to block the measure by suing, as the group argues that it remains unconstitutional. The trade groups count tech giants as members, including Meta and Amazon.
Similar Legislations
The Washington Post reported that Meta has been dealing with the same legislation in Australia and Canada in the past few years. The law passed in Australia and has been credited to directing an estimated $130 million annually from Meta and Google to news publishers. Meanwhile, the proposal in Canada is still under consideration by the government.
In Washington D.C., lawmakers dropped a measure last year that would create a temporary carve-out in antitrust law, allowing news publishers to band together in negotiating with online platforms over the distribution of their content. This comes after Meta released a similar statement of considering removing news from their platforms once passed.
Related Article : Meta to Remove News Content in Canada if Online News Act Passes
