A new deal between California lawmakers and tech giants, aimed at supporting local journalism, is stirring controversy among journalists and advocates who claim it may do more harm than good. The agreement, championed by Assemblymember Buffy Wicks of Oakland, promises to funnel an average of $25 million a year from Google and the State of California over five years to aid struggling newsrooms. However, critics argue the funding is inadequate and could accelerate the decline of independent journalism by also funding AI applications.
At the center of the debate is the financial structure of the agreement. Google and the state will together contribute $45 million each in the first year, followed by $10 million annually each for the next four years. This total, however, pales in comparison to the estimated $900 million a year that would have been generated by a proposed tax on tech companies for their use of personal data, a bill known as SB 1327 that is blocked from moving forward by the deal. Critics like Senator Steve Glazer of Orinda, who authored SB 1327, warn that the new deal falls drastically short of what’s needed to revive local news in California.
"This proposal does not provide sufficient resources to bring independent news gathering in California out of its death spiral," said Glaser. "Google's offer is completely inadequate."
The deal also includes provisions to accelerate artificial intelligence (AI) technologies in newsrooms, a move that has raised alarm among journalists. Matt Pearce, president of the Media Guild of the West, voiced concerns that AI could replace human journalists, automating content creation and increasing the risk of plagiarism. "It's not just Google, it's newspaper owners too," who are interested in AI, Pearce said, warning that this technology could further undermine the industry.
Adding to the controversy is the absence of other major tech companies, like Meta and Amazon, from the agreement. These platforms, which also profit from the personal data of Californians, are notably missing from contributing to the funding. This has led to questions about the deal’s fairness, and whether it fully addresses the root causes of journalism's decline.
While Wicks and her supporters see the deal as a step toward supporting journalism, critics argue that the deal represents a missed opportunity to hold big tech companies truly accountable. "Newsrooms have been hollowed out across the state while tech platforms have seen multibillion-dollar profits," said Senator Mike McGuire.
As journalism continues to face existential challenges, the future of local news in California remains uncertain, with this new deal offering only a partial solution to the industry’s woes.
