Meta to Block California News if Social Media Tax Passes
Facebook and Instagram may remove news articles from their websites in California if a new bill, the California Journalism Preservation Act, passes into state law.
The act would tax the profits social media platforms make from publishing news content, reports Voice of America. Lawmakers hope to strengthen local journalism by passing the majority of funds collected from this tax to in-state news outlets. The bill has brought a variety of reactions; some see it as a victory against dangerous tech giants, while others have labeled it corrupt cronyism. (READ MORE: Facebook, Australia, and the Necessity of a Market Solution to Big Tech)
Meta’s Response
In a statement released at the end of May, Meta, the owner of Facebook and Instagram, takes the latter view:
If the Journalism Preservation Act passes, we will be forced to remove news from Facebook and Instagram rather than pay into a slush fund that primarily benefits big, out-of-state media companies under the guise of aiding California publishers. The bill fails to recognize that publishers and broadcasters put their content on our platform themselves.… It is disappointing that California lawmakers appear to be prioritizing the best interests of national and international media companies over their own constituents.
Media’s Response
Others see the potential passage of the bill as a victory for journalism. The News/Media Alliance, an organization that represents almost 2,000 American publishers, has stated that “[c]urrently, creators of journalistic and creative content are not adequately compensated for the use of their work.”
“We are encouraged,” says News/Media CEO Danielle Coffey, “by the support we’ve had for addressing the severe marketplace imbalance between tech platforms and news and magazine publishers.”
Foreign Precedent
California is not the first state in which these types of laws have been proposed or Meta has made such moves. CNBC reports that when Australia implemented a similar law in 2021, Facebook removed news for several days. The ban was lifted after Meta and the Australian government came to an agreement. According to the Toronto Star, Canadian parliamentarians are debating their own version of the California Journalism Preservation Act, and Meta is about to test a partial news block on its platforms in Canada.
The lead tech writer of Reporters Without Borders, Vincent Berthier, sees Meta’s actions as part of a problematic pattern. As he told Voice of America, “Meta’s blackmail threats when confronted with the possibility of having to compensate news organizations for using their content have become all too common.”
Halfway through earning a master’s in national security at the Institute of World Politics, Mason Stauffer is part of The American Spectator’s 2023 intern class. When he isn’t preparing for his future career in the national security sector, Mason can usually be found hiking through the National Park System or playing his trumpet.
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