Facebook and Instagram threaten to block news articles in California if lawmakers pass the California Journalism Preservation Act.
The big picture: The proposed legislation aims to redistribute ad revenue from tech platforms to media organizations by taxing ad profits from news article distribution.
* Assemblywoman Buffy Wicks sponsors the bill, arguing it could be a “lifeline” for local news organizations experiencing a decline in ad revenue.
Tech platform response: Meta, the parent company of Facebook and Instagram, argues that the bill supports out-of-state sites and would force them to remove news content from their platforms.
* Andy Stone, Meta spokesman, said the company would “remove news from Facebook and Instagram” if the bill passes.
Industry impact: The media industry has lost 40,000 newsroom jobs between 2008 and 2020, with tech giants such as Meta and Google dominating online advertising market shares.
* Australia’s successful implementation of similar legislation has led to an additional $150 million for news organizations and the creation of 50 new journalist roles.
Opposing views: Critics argue the bill may have unintended consequences and could potentially benefit bad actors or hedge-fund owners that have previously cut newsrooms for profits.
* Media scholar Amanda Lotz notes that the journalism business model is collapsing, but it is not solely the fault of Big Tech companies.
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