(TheIndependentStar.com) – In a deal that seems set to solidify leftist narratives in California newsrooms while also boosting Big Tech’s influence even further, Google finalized an unprecedented agreement valued at up to $250 million to financially support news organizations throughout the state, shocking many journalists.
This agreement received accolades from Governor Gavin Newsom, although it also faced criticism from journalist unions within the state, National Review reports.
The settlement was reached after California legislators decided to withdraw certain legislative proposals that would have financially impacted Google and other technological corporations significantly.
Originally, one of these bills mandated that tech companies pay a portion of their online advertising revenue to Californian newsrooms for using their journalistic content.
Another bill proposed a 7.25 percent tax on digital advertising revenues to establish a tax credit for these newsrooms.
Both legislative initiatives were set aside following the agreement.
“The deal not only provides funding to support hundreds of new journalists but helps rebuild a robust and dynamic California press corps for years to come, reinforcing the vital role of journalism in our democracy,” Governor Newsom remarked.
State Representative Buffy Wicks (D.), the proponent of the legislation that would have required tech giants to compensate for distributing news content, praised the agreement for “supporting a free and vibrant press” and “empowering local news outlets up and down the state to continue in their essential work.”
In response to the proposed legislation by Wicks in April, Google began to block links to California-based news organizations, which provoked criticism from these organizations.
The News Media Alliance, representing over 2,000 U.S. news organizations, appealed to the Department of Justice, the Federal Trade Commission, and California Attorney General Rob Bonta to investigate if Google’s actions violated any laws.
The announcement has faced considerable criticism, notably from State Senator Steve Glazer (D.), who spearheaded the digital ad revenue tax bill, Senate President Pro Tempore Mike McGuire (D.), and several journalist unions.
The Media Guild of the West, the NewsGuild-CWA, Pacific Media Workers Guild, and other unions collectively expressed their disapproval.
“The future of journalism should not be decided in backroom deals. The Legislature embarked on an effort to regulate monopolies and failed terribly. Now, we question whether the state has done more harm than good. California’s journalists and news workers OPPOSE this disastrous deal with Google and condemn the news executives who consented to it in our names,” they declared.
The agreement includes the creation of the National AI Innovation Accelerator, which will receive about $62.5 million over five years to aid newsrooms in exploring artificial intelligence for journalistic purposes.
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