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Google says it will reduce some user access to California news sites

Wendy Lee, Los Angeles Times on

Published in Business News

Google said Friday it would remove links to California news sites from its search results for some of its users, as it pushes back against a pending bill that would require the Silicon Valley technology company to pay publishers.

The search giant said the bill, called the California Journalism Preservation Act (CJPA), would upend its business model. The bill, if signed into law, would require companies including Google to fork over a "journalism usage fee" when they sell ads next to news content.

"We have long said that this is the wrong approach to supporting journalism," wrote Jaffer Zaidi, vice president of Google's Global News Partnerships, in a blog post on Friday. "If passed, CJPA may result in significant changes to the services we can offer Californians and the traffic we can provide to California publishers."

Google also said it is "pausing further investments in the California news ecosystem."

Many news outlets rely on sites like Google and Facebook to distribute its news, but they are at the whim of the companies' algorithms.

Publishers, including the Los Angeles Times, have laid off staff in part due to revenue shortfalls blamed on the decline of print journalism and weak advertising dollars.

 

National news organizations such as the Washington Post and the Wall Street Journal also have laid off staff, as have primarily digital operations including BuzzFeed, Business Insider and Vice.

Local online outlet L.A. Taco, which recently put most of its staff on furlough, said one of the factors leading to its struggles include "Google's A.I. that pulls information for its self-generated responses from news organizations without linking back." It also cited changing audience habits as people gravitate toward watching influencer-style videos instead of reading articles.

"These two factors essentially destroyed journalism's business model overnight," wrote Javier Cabral, L.A. Taco's editor.

The California Journalism Preservation Act is supported by the California News Publishers Assn. and the News/Media Alliance, of which The Times is a member.

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