Google and California Partner in Controversial Deal to Boost Local Journalism

Google will invest millions in California to support local journalism and AI initiatives as part of a first-of-its-kind deal. Critics argue the agreement primarily benefits Google by avoiding potential legislation that would impose a 'link tax'. Journalism unions decry the exclusion from negotiations and potential underfunding.

Google is set to invest millions of dollars in California to bolster local journalism and artificial intelligence (AI) initiatives through a pioneering deal. However, the arrangement, which emerged from closed-door negotiations, has sparked criticism for largely benefiting the tech giant. Detractors claim it sidesteps groundbreaking legislative proposals that could have obligated ongoing payments from Google and other platforms to news publishers.

Victor Pickard, a media policy professor at the University of Pennsylvania, described the agreement as a missed opportunity for broader financial support. He noted that California lawmakers abandoned a significant potential funding source by shelving a bill mandating that tech giants continuously support news outlets they profit from.

Kent Walker, president of global affairs for Google's parent company Alphabet, stated that the deal would enhance journalism and AI sectors in California. Despite these assurances, the Media Guild of the West and other journalist unions have voiced concerns over their exclusion from the negotiations and the possibility of underfunding.

(With inputs from agencies.)