Google enters deal for $110 million US newsroom funding, but journalists and democrats oppose it

The agreement between Google and California includes funding for artificial intelligence, stoking fears in many journalists that their jobs could be replaced

Published on: Aug 22, 2024, 13:41:44 IST

By HT News Desk | Edited by Abhyjith K. Ashokan

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Google has brokered a deal with California lawmakers to provide millions of dollars to local newsrooms, according to a Politico report, which added that this resulted in sharp criticism from journalists and Democratic lawmakers.

The Google logo is displayed in front of company headquarters during the Made By Google event on August 13, 2024 in Mountain View, California. (Justin Sullivan/Getty Images via AFP)

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Why did Google enter into a deal to fund newsrooms?

Google's deal is the latest among a series of global efforts, especially in countries like Australia and Canada, where tech companies support the journalism they profit from, according to the report which added that this was because the media industry has seen a decline as readership migrated online and advertising dollars evaporated, resulting in thousands of job cuts globally.

What is the deal all about?

The deal states that Google and the state of California would be jointly contributing money over five years to support local newsrooms, excluding broadcasters, using a“News Transformation Fund” housed at UC Berkeley’s journalism school.

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Google would be giving $110 million and the state would give $70 million, the report quoted Assembly member Buffy Wicks, an Oakland Democrat who led the negotiations for the deal, as saying.

Why are journalists and lawmakers criticizing the deal?

The funding is also earmarked for artificial intelligence (AI), which stoked fears in many journalists that their jobs could be replaced.

Democratic legislators felt that Google was using its influence to get favourable terms from Sacramento.

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However, the California News Publishers Association supported the deal, calling it a “first step” in steering journalism towards a more sustainable business model, and journalist union Media Guild of the West, said that the deal would not alter the Google's vast power over newsrooms.

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HT News Desk
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