A bill gaining traction in the Oregon Legislature could force tech giants like Google and Facebook to pay local media outlets for news articles shared on their platforms.
Senate Bill 686, introduced by Sen. Khanh Pham, D-Portland, cleared the Oregon Senate Committee on Rules this week and now heads to the full Senate for consideration. If passed into law, the bill would require major digital platforms to compensate newsrooms when they use or link to locally produced news.
Supporters of the bill say it would provide a much-needed safety net to Oregon newsrooms, which have seen advertising revenue stripped away by online advertisers, such as Google, Facebook and Instagram for years.
But critics say it could end up hurting more newsrooms than it helps, and point to issues in Canada as a warning sign of what could happen locally.
Addressing a broken market
The bill is modelled after similar efforts in Canada, Australia and California, where governments have sought to address the financial imbalance between local media and tech platforms, with limited success.
Under the proposal, a portion of the funds paid by tech companies would go to a new journalism consortium at the University of Oregon to support small news publishers, the remaining 90 per cent of funds would go directly to newsrooms, based on how many journalists they employ. The money would come with strict requirements: at least 70 per cent of each stipend must go to paying journalist salaries.
That money is badly needed, Pham said. News organizations have slashed staff and salaries in an effort to stay in business. That, in turn, has a big impact on the communities they write about.
SA国际影视传媒淵ou feel it in the loss of coverage, in the loss of investigative journalism,SA国际影视传媒� Pham said. SA国际影视传媒淚SA国际影视传媒檝e heard of some papers that donSA国际影视传媒檛 accept SA国际影视传媒榣etters to the editorSA国际影视传媒� anymore, because thereSA国际影视传媒檚 nobody to take them in. ThatSA国际影视传媒檚 our shared public space.SA国际影视传媒�
Laurie Hieb, executive director of the Oregon Newspaper Publishers Association, said her organization is SA国际影视传媒渁ll inSA国际影视传媒� on the bill.
SA国际影视传媒淚f we donSA国际影视传媒檛 do something, who will?SA国际影视传媒� she said. SA国际影视传媒淕oogle is making money off of our articles and our work without any compensation.SA国际影视传媒�
Pushback from tech platforms
Tech companies, particularly Meta, have fiercely opposed similar legislation elsewhere.
When Canada passed a similar law in 2023, Meta responded by banning news entirely, blocking any news content from appearing on Facebook and Instagram in the country SA国际影视传媒� cutting off a major source of readers for many outlets.
Overnight, web traffic to Canadian news sites dropped 58 per cent, according to the Media Ecosystem Observatory.
Taylor Owen, director of the Centre for Media, Technology and Democracy in Canada, said 11 million links a day disappeared.
SA国际影视传媒淭hatSA国际影视传媒檚 a big drop in the consumption of journalism,SA国际影视传媒� he said. SA国际影视传媒淪tates that do this are taking a huge risk.SA国际影视传媒�
In Canada, newsrooms that relied on social media to draw in readers, particularly small and independent outlets, took a heavy blow. Some closed down, Owens said, and the entire Canadian media landscape has had to find new ways to bring in readership that doesnSA国际影视传媒檛 rely on social media.
Social media companies like Meta once encouraged newsrooms to use their platforms to build an audience, Owens said, but after the 2016 U.S. presidential election, which was marred with accusations of misinformation on the platforms, tech companies began to rethink their desire to promote news.
SA国际影视传媒淲hen Facebook says news is not a value to them commercially, theySA国际影视传媒檙e right,SA国际影视传媒� Owens said. SA国际影视传媒淪A国际影视传媒� But turning off the news after youSA国际影视传媒檝e made everyone dependent on your platform for all of their needs? ThatSA国际影视传媒檚 a problem.SA国际影视传媒�
Could the same thing happen here?
Officials for the tech giant have said that, given the choice between paying newsrooms or banning links, theySA国际影视传媒檒l choose the latter if OregonSA国际影视传媒檚 bill becomes law.
SA国际影视传媒淚f faced with legislation that requires us to pay for news content that publishers voluntarily post and is not the reason most people come to Facebook and Instagram, we will be forced to make the same business decision in Oregon as we did in Canada and end news availability on these services,SA国际影视传媒� Meta said in a statement.
Dan Sachs, MetaSA国际影视传媒檚 senior national director for state and local policy, wrote to Oregon lawmakers in April, arguing that OregonSA国际影视传媒檚 bill is SA国际影视传媒渂ased on a false premiseSA国际影视传媒� that social media companies should pay newsrooms. Publishers willingly post content on Meta platforms to increase their reach, he said, and Meta doesnSA国际影视传媒檛 proactively promote news links anymore.
Hieb, with the ONPA, said one company like Meta should not be able to control how an entire state engages with journalism.
SA国际影视传媒淚tSA国际影视传媒檚 shameful that thatSA国际影视传媒檚 the situation that weSA国际影视传媒檙e all in right now,SA国际影视传媒� she said.
Political and legal challenges
The Oregon bill has a growing list of supporters, particularly among Democrats, which hold supermajorities in the state House and Senate. Gov. Tina Kotek has indicated that she will sign the bill if passed, and many news outlets such as Oregon Public Broadcasting, have been supportive of the bill. Staff at this newspaperSA国际影视传媒檚 parent company have also testified in support of the proposal.
SA国际影视传媒淚n this moment, weSA国际影视传媒檙e seeing the impact on our communities when we lose local journalism,SA国际影视传媒� said Pham. SA国际影视传媒淲e have a state stepping up to balance a market that has become fundamentally damaged by a monopoly. ItSA国际影视传媒檚 really important that we take a legislative approach.SA国际影视传媒�
Some critics, however, have voiced constitutional concerns. Christopher Allnatt of OregonSA国际影视传媒檚 Office of Legislative Counsel said the bill would likely violate federal laws barring the government from taking private property for public use.
Rep. Mark Bonham, R-The Dalles, said the bill will result in legal challenges that taxpayers will have to pay.
SA国际影视传媒淥ne of the fundamental things that weSA国际影视传媒檝e done in the United States is to say that weSA国际影视传媒檙e not going to tax the internet,SA国际影视传媒� Bonham said. SA国际影视传媒淎nd yet here we are in the state of Oregon, the tip of the spear.SA国际影视传媒�
Hieb and other supporters are urging public engagement.
SA国际影视传媒淚f people are concerned about the Google and Facebook monopoly and throttling the news, they should definitely call their reps,SA国际影视传媒� said Hieb.
Pham acknowledged the risk of backlash, but said saving Oregon newsrooms is important not just to readers, but to democracy.
SA国际影视传媒淚 have deep concerns about the state of our democracy,SA国际影视传媒� Pham said. SA国际影视传媒淭his is one step in strengthening one of the pillars we need if weSA国际影视传媒檙e going to have a healthy democracy. This bill is the first real step toward restoring local journalism in Oregon.SA国际影视传媒�
Owens, in Canada, said some positive outcomes have emerged from the 2023 law.
Last month, Canada collected $22 million from Google, which it distributed to 108 news organizations across the country.
SA国际影视传媒�(Canadian publishers) said they wanted to even the playing field, and thatSA国际影视传媒檚 a fair position to have as a publisher,SA国际影视传媒� Owens said. SA国际影视传媒淣ow they get (monthly payments from Google). ThatSA国际影视传媒檚 not nothing, especially in an industry thatSA国际影视传媒檚 in freefall. ThatSA国际影视传媒檚 not a bad thing at all, so long as they donSA国际影视传媒檛 depend on Facebook for their traffic.SA国际影视传媒�
