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Home Business

Meta threatens to dam news in Calif. over push to pay publishers

INBV News by INBV News
June 1, 2023
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Meta threatens to dam news in Calif. over push to pay publishers
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Facebook parent Meta threatened to remove all news content in California ahead of a key vote by state lawmakers Thursday on whether to advance a bill requiring Big Tech firms to pay media outlets.

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The California Journalism Preservation Act would require “online platforms” to fork over a “journalism usage fee” to outlets whose content appears on their sites.

“If the Journalism Preservation Act passes, we will likely be forced to remove news from Facebook and Instagram quite than pay right into a slush fund that primarily advantages big, out-of-state media firms under the guise of aiding California publishers,” Meta spokesman Andy Stone said late Wednesday.

“It’s disappointing that California lawmakers look like prioritizing one of the best interests of national and international media firms over their very own constituents,” Stone added.

California’s bill is slated for an initial vote within the California assembly on Thursday that might advance the laws to the state Senate — with a final vote expected later this yr.

The fee can be based on ad revenue and outlets can be required to make use of at the least 70% of the proceeds to support their newsrooms.

Stone later told the Wall Street Journal that Meta’s motion, if pursued, would mean that users on Facebook and Instagram can be unable to read or share articles on either platform.

It was the primary time billionaire Mark Zuckerberg’s company has addressed California’s initiative, but Meta has made previous warnings to other countries considering similar measures.

The bill’s sponsor, California state assemblywoman Buffy Wicks, blasted Meta over the “scare tactic.”.

“This threat from Meta is a scare tactic that they’ve tried to deploy, unsuccessfully, in every country that’s attempted this,” Wicks tweeted. “It’s egregious that one in every of the wealthiest firms on the planet would quite silence journalists than face regulation.”

The social media giant has been under mounting pressure since 2021, when Australia enacted a law requiring tech firms to achieve content deals with publishers.

Meta staunchly opposed the Australia law and briefly blocked Facebook news content within the country, but later relented after talks with lawmakers.

Mark ZuckerbergMark Zuckerberg’s Meta has repeatedly threatened to drag news content over payment bills.AP

MetaMeta argues the California bill would mostly profit large publishers.David G. McIntyre

Earlier this month, executives from Meta and Big Tech rival Google said they’d pull news content in Canada if the country passed proposed laws requiring payments to publishers.

Meta delivered an identical warning last December following reports that Congress was mulling similar laws.

The federal measure, which might limit the dimensions of publishers eligible to barter content deals, continues to be into account.

With Post wires

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