Senators take on big tech dominance with Journalism Competition Act
The Journalism Competition and Preservation Act appears to be moving toward a bipartisan approval in the Senate. The bill gives news organizations a four year exemption from antitrust laws, so they can collectively negotiate with big tech companies like google and facebook, to be paid for their content posted on those sites.
The Senators who wrote the bill are concerned that the tech companies are making money when users visit their site to catch up on the news, but it’s the news organization’s work that the people were looking for, and they’re not getting a fair cut of the profit.
Ted Cruz says: “I agree that big tech exercises a concentration of power that I think is unknown in the history of mankind. And that concentration of power is regularly used to trample on the little guy.”
Senator Cruz agreed to support the bill after an amendment was approved to bar negotiations from pertaining to censorship and the type of content being posted on these sites.
Opponents of the bill say the news industry should not be given a special carveout of antitrust laws that explicitly prohibit this type of collaboration amongst businesses to set prices.
Mike Lee “This is still a bill that actually exacerbates the dependence of news publishers on big tech, it certainly doesn’t solve it, I think it makes it a lot worse.”
Senator Alex Padilla was also concerned that the revenue should go to journalism, not executives. He pointed to newspaper conglomerate Gannett which recently spent 100 million dollars on stock buybacks and executive pay at the same time it laid off 400 employees. Straight from DC, I’m Ray Bogan.