Google has started to remove California news websites from certain search results, as a test measure following the proposed California Journalism Preservation Act that would require tech companies to pay a “journalism usage fee” for linking to news sites based in California. This move was prompted by the potential impact of the legislation on its products. The act, introduced in March 2023, has not yet been passed but would impact digital platforms like Google and Meta, requiring them to pay news outlets for content used alongside digital ads. This temporary change affects some Google users in California, and it is unclear how many are affected.
Google, a subsidiary of Alphabet, announced in a blog post that it would also pause new investments in the California news industry, including its partnership initiative with news organizations and the product licensing program. Jaffer Zaidi, Google’s vice president for global news partnerships, expressed concerns that the legislation could disrupt the current model that helps publishers grow their audiences at no cost to them. The bill, known as the California Journalism Preservation Act, passed the California assembly in 2023 and awaits a hearing by the state’s Senate Judiciary Committee, and subsequently requires approval by Governor Gavin Newsom to become a law.
The potential impact of the California Journalism Preservation Act has led to a significant response from Google, indicating the complexity of the relationship between big tech companies and the news industry. This issue has implications beyond California, as it could set a precedent for similar legislation in other states, and even at the federal level. The outcome of this test and the subsequent decision by the California Senate may have far-reaching consequences for the news industry, as well as for the business models of tech companies that rely on news content for their services.
