Level the playing field for news organizations and tech titans

The following editorial appeared in the Contra Costa (Walnut Creek, Calif.) Times:

It’s a simple concept: Digital platforms such as Google and Facebook should pay media companies for the news content that appears on their platforms.

Rep. Mark DeSaulnier, D-Calif., agrees. He co-sponsored a bill introduced March 10 in Congress that would allow media organizations to set terms with social media platforms for sharing their content.

The legislation is long overdue. Google and Facebook have clearly played a role in the decline of local news organizations that serve the public and act as a watchdog over people in power.

The Journalism Competition and Preservation Act would create a 48-month window for companies to negotiate fair terms that would send advertising dollars back to publishers and protect Americans’ right to access quality news.

The bill has widespread bipartisan support, a rarity in today’s divisive political world. The House sponsors include DeSaulnier; Rep. Ken Buck, R-Colo.; and Rep. David Cicilline, D.-R.I. A similar bill in the Senate has the backing of Sen. Amy Klobuchar, D-Minn., and Sen. John Kennedy, R-La. The legislation also has the support of Senate Minority Leader Mitch McConnell, R-Ky.

“We must enable news organizations to negotiate on a level playing field with the big tech companies if we want to preserve a strong and independent press,” said Klobuchar, chair of the Senate Judiciary antitrust subcommittee. “Our media outlets need a fighting chance when negotiating for fair treatment by the digital platforms where so many Americans consume their news.”

The legislation is similar to an Australian law that passed in February that requires Facebook and Google to pay publishers for content. But unlike the Australian law, the current version of the bill before Congress does not subject media companies and tech titans to mandatory price arbitration if an agreement cannot be reached.

Google fought the Australian bill but eventually made deals with news publishers before the law was passed. Facebook went as far as to implement a total ban on news content in Australia before reversing course and negotiating the final version of the legislation.

Countries around the world are considering similar legislation in response to the devastating impacts on the news media.

The number of newspaper newsroom employees in the United States has dropped by 50% since 2008, according to the Pew Research Center. More than 300 newspapers closed in 2020, primarily due to advertising dollars moving from print to social media.

In contrast, Facebook generated more than $85 billion in 2020 from advertising, a record for the company. Google’s advertising revenues accounted for about $86 billion in 2020, or roughly 70% of its total revenues.

Watchdog journalism plays a crucial role for readers and society as a whole. It provides an essential check on local, state and federal government. Congress should pass the Journalism Competition and Preservation Act and allow news organizations to be fairly compensated for the news they generate.