Google’s $250M Deal to Fund California Newsrooms Sparks Backlash from Journalists
Google has entered into a groundbreaking agreement with California lawmakers to fund newsrooms across the state, marking the first deal of its kind in the United States. Announced on Wednesday, the tech giant committed $250 million over five years to support local journalism, in a move designed to replace proposed legislation that would have required tech companies to pay for distributing news content. However, the deal has been met with significant criticism from journalist unions, who have labeled the agreement “disastrous.”
Under the terms of the deal, Google will contribute up to $15 million to a journalism fund in the first year, with California investing $30 million. In the subsequent four years, Google’s contribution will increase to at least $20 million annually, while California’s share will drop to $10 million per year. The initiative also includes the launch of an artificial intelligence “accelerator” to assist journalists in their work.
This agreement effectively halts the California Journalism Preservation Act, a bill that sought to compel tech companies like Google and Meta to pay news organizations for online content distribution. The bill, championed by state assemblymember Buffy Wicks, was inspired by similar laws in Australia and Canada, aimed at bolstering local news outlets that have struggled financially in the face of big tech’s dominance.
“This partnership represents a cross-sector commitment to supporting a free and vibrant press, empowering local news outlets up and down the state,” Wicks said in a statement. California Governor Gavin Newsom also praised the deal, calling it a “major breakthrough” for the survival of newsrooms in the state.
Despite the positive spin from officials, the deal has been heavily criticized by journalist unions, which were excluded from the negotiation process. The Media Guild of the West and The NewsGuild-CWA, among others, condemned the agreement, arguing that it fails to address the root issues affecting journalism and undermines efforts to hold tech monopolies accountable.
“The future of journalism should not be decided in backroom deals,” the unions stated. They expressed concern that the deal could cause more harm than good, accusing state leaders of abandoning a critical regulatory effort.
The agreement also faced pushback from some California legislators. State Senator Steve Glazer argued that the resources provided by the deal are insufficient to reverse the decline of independent journalism in the state, while Senate President Pro Tempore Mike McGuire criticized the plan for not fully addressing the financial challenges facing local media.
This development follows months of tension between Google and California lawmakers, during which Google threatened to block news content in the state if the original bill passed. A similar situation occurred in Canada, where Google eventually agreed to pay $74 million annually to support local journalism under the country’s new Online News Act.
As the debate continues, journalist unions and news organizations remain skeptical about the long-term impact of the deal, questioning whether it will truly benefit the industry or simply allow tech giants to maintain control over the digital news landscape.
