Google Limits News in California Over New 'Link Tax'

Google is initiating a trial to limit access to news websites for certain users in California. This measure comes as a preemptive response to the California Journalism Preservation Act (CJPA), which is currently under consideration. The proposed legislation would mandate that online platforms, including Google, compensate news publishers for linking to their articles.

The CJPA aims to address concerns about how news content is used by tech companies without proper compensation to the publishers. If enacted, the law would significantly impact the way platforms like Google interact with news content, potentially leading to increased costs for accessing and sharing news online.

In light of this potential legal change, Google’s move to restrict access could be seen as a strategic effort to prepare for the financial implications of the proposed law. By testing these limitations now, Google is positioning itself to better handle the effects of the CJPA, which could reshape the relationship between tech companies and news publishers in California.

What Is The California Journalism Preservation Act?

The California Journalism Preservation Act (CJPA), recently introduced in the state legislature, seeks to support local journalism through what Google describes as a “link tax.” This legislation aims to require online platforms, such as Google, to pay media outlets for the traffic they generate by linking to news articles. The goal is to provide financial support to news organisations that produce quality journalism and to bolster the local news ecosystem.

If enacted, the CJPA would mandate that tech companies compensate news publishers whenever their content is linked to, potentially creating a new revenue stream for media outlets. However, Google has raised concerns about the bill’s potential impact on the news industry. The company argues that the legislation, as currently proposed, might have unintended negative consequences.

Jaffer Zaidi, Google’s Vice President of Global News Partnerships, voiced his reservations in a blog post. He argued that the bill could disproportionately benefit large media conglomerates and hedge funds that have been actively lobbying for its passage. Zaidi contends that these entities could use the funds from the CJPA to further consolidate local newspapers, reducing their editorial staff and turning them into “ghost papers” with minimal resources. This, he suggests, would result in lower-quality journalism and undermine the original intent of supporting local news outlets.

Google’s Response

To evaluate how the CJPA might affect its services, Google is conducting a test with a subset of users in California.

In this trial, Google will remove links to news websites in California that could be impacted by the proposed legislation.

Jaffer Zaidi explains, “To prepare for the potential effects of the CJPA, we are starting a short-term test involving a small percentage of California users. This test will involve removing links to news sites in California that might be affected by the CJPA, to assess how this could impact our services.”

Google Claims Only 2% of Search Queries Are News-Related

Zaidi highlighted the evolving patterns in how people consume news and how these changes are affecting search queries on Google:

“People’s preferences for news have shifted significantly. Many now rely on sources such as short-form videos, topical newsletters, social media, and curated podcasts, with a substantial number opting to avoid traditional news outlets altogether. Consequently, only 2% of searches on Google are news-related.”

Despite this low percentage of news-related queries, Google remains committed to supporting news publishers and enhancing their visibility on its platform. However, Zaidi expressed concern that the CJPA, in its current form, could disrupt these efforts and negatively impact Google’s ability to invest in news services and support media outlets.

A Call For A Different Approach

In its current state, Google argues that the CJPA could harm the news industry in California and negatively impact all stakeholders involved. The company is urging lawmakers to explore other methods of supporting the news sector without adversely affecting smaller, local news outlets.

Google asserts that it has made significant efforts over the past 20 years to aid news publishers. This includes the launch of Google News Showcase, which operates in 26 countries, including the U.S., and features over 2,500 publications. Additionally, through the Google News Initiative, the company has partnered with more than 7,000 news publishers worldwide, including 200 news organizations and 6,000 journalists in California.

Zaidi noted that maintaining a robust news industry in California will require both state government support and engagement from a wide range of private companies. As the legislative process moves forward, Google is open to working with California publishers and lawmakers to find alternative solutions that would enable it to continue linking to news content effectively.