Cantwell to Hill: Defend Local Journalism Against Big Tech

October 28, 2020 by Karl Herchenroeder|Media Notes

Congress shouldn’t let local news “die” because Big Tech companies unfairly leverage the ad market, Senate Commerce Committee ranking member Maria Cantwell, D-Wash., said Tuesday, releasing a report showing newspaper revenue declining about 70% by the end of 2020 vs. two decades ago. The report said broadcasters lost more than 40% of ad revenue 2000-2018, and since 2005, papers lost about 60% of their overall workforce. “The biggest online platforms unfairly use content, take local news consumer data and divert customers away from local news websites, while providing little in return,” she said. NAB, Public Knowledge and the News Media Alliance welcomed the report. NAB supports “findings that the competitive power of a handful of digital platforms has dominated the marketplace for advertising and audiences,” said CEO Gordon Smith. “Targeted federal funding and new regulatory tools can help transition local journalism to succeed in the digital marketplace,” said PK Senior Policy Fellow Lisa Macpherson. Google and Facebook “effectively regulate news publishers by determining how (and whether) journalism is distributed and monetized,” said News Media Alliance CEO David Chavern. The "accusation" that Facebook scrapes news articles is "simply not true," a company spokesperson emailed: "We give news organizations the ability to post news on Facebook free of charge, and they have full control over how that content is accessed and monetized." The platform cited $400 million in contributions to "programs and partnerships with a focus on local news." News publishers are facing “enormous” challenges, but the report is a misrepresentation, a Google spokesperson emailed: “We provide value to the news industry by sending people to news sites 24 billion times a month, help publishers make money with our advertising products and provide support via the Google News Initiative.” The company cited a $1 billion investment in partnerships with news publishers for Google News Showcase.