Google agrees to first-in-the-nation deal to fund California newsrooms, but journalists are calling it a disaster

Google on Wednesday struck a first-in-the-nation deal with California lawmakers to fund newsrooms in the state and end proposed legislation that would have forced technology giants to pay news organizations for distributing their content. But the agreement was immediately met with fierce criticism from journalist unions, who called the deal “disastrous.”

Google struck a first-in-the-nation deal with California lawmakers on Wednesday to fund newsrooms in the state and end proposed legislation that would have forced technology giants to pay news organizations for distributing their content. But the agreement was immediately met with fierce criticism from journalist unions, who called the deal “disastrous.” The plan calls for a $250 million commitment over five years from Google and the state, a majority of which would fund California newsrooms, and launch an artificial intelligence “accelerator” designed to support journalists’ work. The deal ends a high-profile bill, dubbed the California Journalism Preservation Act by state assemblymember Buffy Wicks, that would have forced technology companies, including Google (GOOGL) and Meta (META), to pay news companies to distribute their content online. The bill, which was modeled after similar laws implemented in Australia and Canada, would have funded local news organizations that have seen their business models collapse amid the rise of big tech platforms. “As technology and innovation advance, it is critical that California continues to champion the vital role of journalism in our democracy,” Wicks said in a statement. “This partnership represents a cross-sector commitment to supporting a free and vibrant press, empowering local news outlets up and down the state to continue in their essential work. This is just the beginning. I remain committed to finding even more ways to support journalism in our state for years to come.” California Gov. Gavin Newsom, who had not publicly weighed in on the bill, also hailed the deal, calling it “a major breakthrough in ensuring the survival of newsrooms and bolstering local journalism across California — leveraging substantial tech industry resources without imposing new taxes on Californians.” News publishers have struggled mightily in recent years, shedding thousands of jobs and prompting the closure of some outlets altogether as advertising dollars and audiences have rapidly shifted away from traditional publications.