Google's Deal with California: Funding Journalism or Avoiding Regulation?
Sep 4, 2024

Sam

Hey Amy, I just read something about Google paying money for news in California. What's that all about?

Amy

Oh, that's a big deal! Google agreed to give millions of dollars to help pay for local journalism jobs in California. It's the first deal like this in the country.

Sam

That sounds good, right? More money for news is a good thing, isn't it?

Amy

Well, it's not that simple. Some people think it's not as good as it sounds. They say Google is actually getting a better deal out of this than the news organizations.

Sam

Really? How come? I thought getting money would help newspapers and stuff.

Amy

It will help some, but here's the thing: California was thinking about making a law that would have forced Google to pay even more money to news companies. By making this deal, Google avoids that law.

Sam

Oh, I see. So they're paying some money to avoid paying more later?

Amy

Exactly! And some experts think Google would have had to pay much more under the law. One professor thinks Google owes California publishers about $1.4 billion every year.

Sam

Wow, that's a lot more than what they're paying now! But why does Google owe money to news companies anyway?

Amy

Good question! It's because Google uses news content in its search results and makes money from ads next to that content. Many people think Google should share some of that money with the news companies who create the content.

Sam

I never thought about that before. So are the news companies happy with this deal?

Amy

Some are, but many aren't. A lot of journalists and their unions feel left out. They say they weren't included in the talks about the deal. They're worried it won't help as much as the law would have.

Sam

That doesn't sound fair. What about the money? How much is Google actually paying?

Amy

The whole deal is worth $250 million over five years. Google is putting in $110 million for journalism jobs, and the state is adding $70 million. Google's also giving $70 million for AI research.

Sam

AI research? What does that have to do with helping news companies?

Amy

That's another thing some people are upset about. They think the AI part is just another way for tech companies to eventually replace journalists. It wasn't part of the original plan.

Sam

This is all so complicated! What happens next?

Amy

Well, the deal is supposed to start next year. But some people in the government aren't happy about it, so things might change. It's a big debate about how to help local news and how to deal with big tech companies.