Report from the Nelson Star
In Brief – Legislation that aims to force the largest digital platform companies, especially Google and Meta, to pay Oregon media companies when the content they create appears in search results or on the companies’ social media platforms, is moving through the Oregon state legislature with backing from key Democratic leaders. SB 686, the Oregon Journalism Protection Act, requires the covered companies to pay in-state digital journalism enterprises directly, with arbitrators used to set rates when parties don’t reach agreement, or donate to the Oregon Civic Information Consortium, a non-profit organization established by the bill to support local journalism. Bill backers modeled their effort after Canada’s Online News Act, which was passed in 2023 and recently resulted in Google making $22 million of $100 million in annual payments to Canadian media companies, as well as a similar effort in California, where Canada-style legislation was debated but then set aside after Google agreed to contribute $55 million to a fund to pay California media companies. California’s state government agreed to contribute an additional $70 million. As they did in Canada and California, Meta officials have informed Oregon legislators that the company would block media posts on their platforms in the state rather than pay local media companies when the media companies themselves, or users, post the media companies’ content on the Meta platforms.
Context – Google and Meta have faced years of pressure from governments around the world trying to force them to pay local media companies. The most interesting development has been the diverging responses of Google and Meta. When push comes to shove, Google agrees to pay while Meta has been willing to walk away. It happened in Canada and California, and is playing out in Australia, where the government is proposing to retaliate against Meta with a special tax on large social media companies that don’t pay media companies. Other US states pursuing taxes aimed at the digital giants include Minnesota considering a tax on large social media services and digital advertising taxes in Maryland, Washington and Rhode Island.