OPINION: Congress must stand up to bullying on news content

This editorial was published in The Seattle Times.

———

As Congress resumes its important work to save local journalism this year, members should beware of tech giants’ cunning tactics to impede progress.

To avoid paying what’s basically an overdue bill to the news industry, tech giants are using both subtle and explicit maneuvers.

Elected leaders must be prepared for these tricks and stand firm against bullying, threats and misdirection.

One obvious, and odious, tactic is threatening to block people’s access to news on their dominant digital platforms.

Google and Facebook parent Meta are now doing this in Canada. Both say they’ll block news from their platforms in response to a new law, requiring them to negotiate payment agreements with news publishers.

This pyrrhic maneuver backfired in Canada, where the liberal government approved its Online News Act on June 22 despite the threats. It also backfired in Australia, where threats hardened the resolve of a conservative-led government to approve a similar policy in 2021.

Congress should show just as much resolve as it considers its version, the Journalism Competition and Preservation Act, that passed out of the Senate Judiciary Committee on June 15.

More insidious is the sowing of doubt through third parties. Some receive funding and other support from Google and Meta, then oppose policies requiring the tech companies to pay their news bill.

This includes nonprofits and even some journalism organizations, but they speak for only a small fraction of the news industry providing local coverage across the United States.

Take LION, the Local Independent Online News publishers trade group. It is doing some fine work supporting news startups.

LION’s stature and revenue leapt after it received grants and contracts from Google and Meta worth around $5 million between 2020 and late 2022. It contracts with the tech companies to provide training and distribute grants.

Not surprisingly, LION opposed JCPA and Canada’s Online News Act. It also opposed the California Journalism Preservation Act, a state version that was put on hold last week, delaying it until 2024 in part to address questions raised by skeptics.

Actually it is surprising, because LION members would benefit if the paradigm changes, unfair competition is addressed, and local news outlets start getting fair and sustained compensation from tech platforms, not just sporadic grants.

Elected officials must be aware of the context.

There are around 8,000 local newspapers and TV stations in the U.S. Most are part of trade associations that strongly favor legislation such as JCPA and virtually all are online. LION has around 450 members in the U.S. and Canada, including some one-person blogs and newsletters.

We hope these small entities grow and prosper. Their work is valued. But LION is far from representative of the broader local news industry.

Still, hearing from entities such as LION “does sow doubt” for some policymakers, said Buffy Wicks, the California Assembly member sponsoring the California Journalism Preservation Act.

“If publications oppose the bill they need to be honest and say we’re also funded by Google and Meta, you know?” Wicks said. “They may still have honest oppositions but I think it’s important that there’s transparency around who funds them.”

Indeed. This is good advice for Congress, other states and other countries, as they work to sustain news organizations that are essential to a well-functioning democracy.

TNS