• by Ray Schultz , Columnist, August 20, 2024

The looming showdown between California and the tech giants may be headed off. 

The California Journalism Preservation Act (CJPA), which would require that Big Tech platforms pay news publishers for using their content, may be shelved because the state and Google have reached a deal.  

Google has committed to $172.5 million and the state to $70 million over five years. Newsrooms could receive $45 million in the first year, KCRA 3 reports. 

In addition, Google has agreed to $12.5 million over five years to accelerate artificial intelligence and OpenAI has agreed to contribute technology, KCRA 3 continues.

The agreement had not been formally announced at deadline. Introduced in the state Assembly by Assemblymember Buffy Wicks, the bill made it out of the Senate appropriations committee last week. 

Don’t expect universal praise for the proposed deal: it is a “ratification of Google’s monopoly power over our newsrooms,” Matt Pierce, president of Media Guild of the West, said in an email to members, according to Politico. 

And, it could be argued that Google is getting off light.

But look at the bright side. If true as reported, this will preclude news-blocking by Google. And it is in line with what Google has agreed to in other locales. The participation of OpenAI buys it some good will as it is fighting litigation by some publishers and signing contracts with others.