Google announced the move in a blog post, calling it a "short-term test for a small percentage of users... to measure the impact of the legislation on our product experience." The company said it also would pause new investments in the California news industry, including the partnership initiative with news organizations and its product licensing program.
"By helping people find news stories, we help publishers of all sizes grow their audiences at no cost to them. (This bill) would up-end that model," Jaffer Zaidi, Google's vice president for global news partnerships, wrote in the blog post.
The California Legislature is considering a bill that would require tech giants like Google, Facebook and Microsoft to pay a certain percentage of advertising revenue to media companies for linking to their content. How much the companies would have to pay would be decided by a panel of three judges through an arbitration process.
The bill aims to stop the loss of journalism jobs, which have been disappearing rapidly as legacy media companies have struggled to profit in the digital age. More than 2,500 newspapers have closed in the U.S. since 2005, according to Northwestern University's Medill School of Journalism. California has lost more than 100 news organizations in the past decade, according to Democratic Assemblymember Buffy Wicks, the bill's author.
"This is a bill about basic fairness — it's about ensuring that platforms pay for the content they repurpose," Wicks said. "We are committed to continuing negotiations with Google and all other stakeholders to secure a brighter future for California journalists and ensure that the lights of democracy stay on."
The state Assembly passed the bill last year with bipartisan support despite fierce opposition and lobbying efforts from big tech companies. The California Senate would have to pass it later this year for it to become law.
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