California considers paying news outlets, Google responds with test blackout

Google Logo
Google Logo

For example, as a Californian, you may remember a time when you searched on Google and saw the headlines of your local online newspaper. If the CJPA receives a bill, Google would like to create this type of environment, which would only allow news websites to have a second rating, no matter how highly they would normally rank. Such a law requires Google to forego financial gain for news organizations when using a Google link and if it is done by a Californian.

Google feels that the CJPA could increase the need for a Google strategic department plan by changing the way they perform in California. They are trying (to check) whether the lack of news content compared to user experience becomes a source of loss (ignoring) to their services. This restriction is also a factor in preventing Google’s participation in new projects in California.

The main problem here is the decline in the financial condition of the journalism industry in the digital world. Google and other such businesses primarily exploit online advertising revenue, and as a result, news outlets receive a smaller share of the pot. According to CJPA advocates, it is intended to restore balance and is a way for news publishers to share the profits from users’ clicks with online outlets.

Google argues that sending a lot of traffic to a particular news website causes you no harm or loss, only additional revenue or other direct benefits. Smaller media outlets also suggest that the law provides significant benefits to larger media companies, while smaller struggling local outlets are left in the dark.

The problem lies in using news value to tell Google the exact value of news revenue. Although not technically selling advertising on the news section, media publishers insist that Google derives value from the mere fact that it is the site that links to the article. Decreasing trends mean that Google will have to pay billions of dollars to publishers every year if federal laws like CJPA limit local conditions.

His work in leading the movement clearly shows that this would not be his first attempt with such legislation. For example, in Spain, the reaction to the passage of a similar law was intense, leading to a Day of Solidarity that marked the end of the protests. This was once again another example of the tremendous negotiating power he possessed as he was about to leave Australia before making some deals with Australian publishers. Australia can serve as a prototype upon which other countries can base their plans. Thus it becomes possible to bring Google back to the leading position.