Sunday, 20 July 2025
29.3 C
Singapore
30.3 C
Thailand
19 C
Indonesia
28.8 C
Philippines

Google’s funding cuts may hit more US news publishers

Google may reduce funding to US news publishers over a new California bill, risking a wider national impact.

Google has warned nonprofit newsrooms that it might reduce funding to the Google News Initiative, which currently provides over US$300 million across thousands of news outlets. This comes after Google threatened to remove links to California news outlets in response to a new state bill, according to Axios.

California’s proposed tax on tech giants

The tech giant issued this warning regarding a new California bill designed to support local news outlets. If this bill is passed, it will impose a 7.25 percent tax whenever large companies like Google sell user data to advertisers. The revenue from this tax would then be used to provide tax credits to news outlets in California.

While this law would only be applicable in California, Google has indicated that it could pause new grants nationwide. Sources informed Axios that Google is concerned about this setting a “wider precedent for other states.” Last month, Google tested removing links to California news outlets in response to the California Journalism Preservation Act (CJPA). This bill would require major tech platforms, such as Google and Meta, to pay for linking to articles from California-based news publishers.

Google’s previous and current actions

When asked for a comment, Google directed us to an April post about the CPJA. In that post, Jaffer Zaidi, Google’s vice president of news partnerships, wrote that the company is “pausing further investments in the California news ecosystem, including new partnerships through Google News Showcase, our product and licensing programme for news organisations, and planned expansions of the Google News Initiative.”

News publishers have long claimed that big tech should pay them more for publishing links to their articles, and rightly so. A working paper published last year estimated that Google would owe publishers between US$11.9 billion and US$13.9 billion per year if a nationwide law were enacted. Other countries with similar legislation, like Australia and Canada, faced similar threats from Google. However, the company ultimately negotiated deals to compensate outlets in both countries.

Hot this week

NTT DC REIT makes quiet debut following Singapore’s biggest IPO in four years

NTT DC REIT debuts on SGX after raising US$773M in Singapore’s biggest IPO in 4 years, amid a growing wave of new listings.

Tim Cook’s leadership is tested as Apple faces uncertainty in the AI era

Tim Cook faces growing pressure as Apple lags in the AI era, raising questions about the future of his leadership.

imoo Watch Phone X10 review: Possibly the best kids’ smartwatch for families today

The imoo Watch Phone X10 is a smart, durable kids’ smartwatch with 4G, GPS, dual cameras, and safety features for everyday use.

Isambard-AI becomes UK’s most powerful AI supercomputer

The UK launches Isambard-AI, its fastest AI supercomputer, to accelerate national research, powered by NVIDIA and government funding.

Microsoft’s Copilot Vision AI can now view your entire screen

Microsoft’s Copilot Vision now sees your entire screen, offering live help and insights through desktop or mobile in real-time.

Nintendo opens larger Switch Online test to 40,000 participants

Nintendo invites 40,000 users to test a new Switch Online feature, expanding its mystery programme across more regions and both Switch models.

Xi Jinping raises concerns over China’s overinvestment in the EV and AI sectors

Xi Jinping warns against China's overinvestment in EVs and AI, urging officials to prioritise sustainability over short-term growth.

Meta refuses to sign the EU’s AI code of practice, citing legal concerns

Meta declines to sign the EU's AI Code of Practice, citing legal concerns and excessive requirements that exceed the scope of the AI Act.

Microsoft closes Movies & TV store on Xbox and Windows without warning

Microsoft has shut down its Movies & TV store on Xbox and Windows, ending new sales but maintaining access to previously purchased content.

Related Articles

Popular Categories