California Poised to Battle Google and Facebook Over 'Journalism Usage Fees'
NetChoice, an industry organization that counts Meta and Google as members, told Gizmodo the California proposal could incentivize large tech companies to abstain from sharing news on their platforms altogether.“This is a ‘link tax’ that will actually result in people seeing less news from legacy newspapers,” NetChoice Vice President & General Counsel Carl Szabo told Gizmodo. “If websites are charged every time we share a link, websites just won’t let us share links to stories of interest.
“end the availability of news content on Facebook and Instagram,” if the bill passed as currently written.Those aren’t hollow threats either. Meta played a similar game of hardball with Australian lawmakers over their own publisher payment law in. Meta called Australia’s bluff, and briefly cut off news access for an estimated 17 million users. Essential services like hospitals and fire services found themselves caught in the crossfire. The jockeying worked.
Given all that precedent, the Californian bill looks like it’s basically guaranteed to face aggressive lobbying pushback and dramatic threats from the tech industry. One state passing a so-called link tax might now seem like too big a deal, however, that small trickle could inspire a flood of similar actions from other states. That could be a real problem for Big Tech.
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