Oregon Bill Seeks Compensation from Tech Giants for Local News
Oregon’s Senate Bill 686 is gaining traction in the legislature, mandating that large tech companies, including Google and Meta, compensate local newsrooms for using their content. The bill proposes that Google pay a minimum of $104 million annually, while Meta would owe at least $18 million. Alternatively, companies can opt for arbitration to establish payment amounts.
Lawmakers from both parties and several Oregon publishers advocate for the bill, viewing it as crucial financial support for state newsrooms and a means to ensure tech firms pay for the local content they profit from. However, Meta and other tech entities strongly oppose the proposal, claiming it could lead to restrictions on Oregon news access and hurt local outlets reliant on wider distribution.
The Senate Rules Committee narrowly advanced the bill, with Democrats backing it, highlighting its importance in addressing disparities between tech companies and news organizations. Governor Tina Kotek has expressed her support, while opponents, including Senate Republican Leader Daniel Bonham, argue that the bill is constitutionally questionable.
Proponents assert that the substantial payments—derived from a study indicating what Google and Meta should pay for local content—will primarily benefit news organizations, mandating they allocate at least 70% to journalist salaries. An auxiliary consortium would receive 10% to fund grants for rural publishers and journalism initiatives.
Tech companies have ramped up lobbying efforts, warning lawmakers of potential adverse impacts on local news traffic and revenues, citing examples from other regions facing similar legislation. Nevertheless, supporters remain resolute, asserting that fairness in compensation is essential, vowing to let the courts address any legal challenges that arise.
The bill is set for a full Senate vote amid escalating tensions between local journalism advocates and the tech industry.
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