by Peter Weinberger | [email protected]
Governor Gavin Newson, who was seen as a proponent of compensating news publishers in his fight against Google and other social media platforms, recently vowed to veto any bill that calls them a “tax hike.” I didn’t realize a state could tax stolen products. This decision ended a long battle that the big tech companies had won. Does this surprise anyone?
You might think so if news organizations own the content their journalists write and edit. But that’s not the case if you believe the owners of social media platforms, who aren’t afraid to steal that content without compensation. Those stolen stories helped the big tech companies — most notably Google and Facebook — build a massive online news and advertising machine that generated billions in profits for their owners and shareholders.
Every attempt by media companies large and small to right this wrong has been met with fierce resistance. The big tech companies have used their army of lawyers, their massive political influence, and even internally generated misinformation – which they dubbed an “internet tax” – to block any legislation that would compensate news publishers. And Newson’s threat sends a clear message, because California has influence over such legislation nationwide.
For more on the impact on the Courier, see my August 2 column, “Courier may stem decline in local news.”
What happens next?
Instead of finding a solution, which requires legislation to address the problem, the State of California and Google have pledged nearly $250 million to news organizations over the next five years, starting with $100 million next year. If you think the Courier won the lottery, we didn’t. Big tech companies will continue to exploit news content to make enormous amounts of money. And while we appreciate the effort and resources, this does nothing to solve the problem of theft of news publishers’ collective creative property, worth well over $250 million over five years.
Newson appears to have absolved the big tech companies of responsibility while patting himself on the back. “The agreement represents a major breakthrough that ensures the survival of newsrooms and strengthens local news across California,” he wrote in a statement. Yeah, right.
State Senator Steve Glazer (D-Orinda) authored a bill that would require major tech companies to pay a fee based on how much data (stories) they publish from other news organizations. Simple, right? You pay for what you use. And the bill focused on Google, Amazon and Facebook. “The financial obligations of Google and other technology companies should have been more extensive, given the significant revenue they generate from distributing journalistic content,” the California News Publishers Association noted.
Newson’s term ends in three years. It’s hard to believe he cares about the long-term health and stability of the local press. I realise that compromise is part of the political game and the Courier is grateful for the help. Given there is only one real chance to fix this, it’s a shame the final decision doesn’t address the real issues we face.
I think it’s important to remember that the Courier remains financially solvent thanks to advertising in the print edition. Readers spend more time with our newspaper, both with our editorial content and with advertising. The perfect example is local real estate agents, who use numerous marketing tools to find new clients, including the print edition of the Courier.
The Courier would like to thank the news organizations, the CNPA and state legislators who have stepped up to the plate to address a problem that is completely outside the Courier’s control, but nonetheless has a huge impact on our success. I can hardly sleep thinking about what Claremont would look like without the Courier. In a world so divided and fragmented, we should not make Claremont just another number.
