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CHIEF SPONSOR: State Sen. Khanh Pham (D-Portland) and 13 Democratic co-sponsors, along with one Republican, Sen. Dick Anderson (R-Lincoln City)
WHAT IT WOULD DO: Senate Bill 686 would compel the dominant players in internet search, Google and Facebook, to compensate local news organizations for the content they provide. Currently, internet searches yield results that are often generated by local news organizations. But Google and Facebook earn the digital advertising dollars from that content.
SB 686, drawing on a concept that has been piloted in California, Canada and Australia, would require the big tech companies to pony up a share of what they earn in Oregon to a third-party administrator. Based on a formula that takes into account revenues and market share, that sum would be $122 million annually. The administrator would pay 10% to a fund at the University of Oregon to be distributed to small newsrooms and startup initiatives. The other 90% would be paid to existing newsrooms based on the head count of their journalists producing news for Oregon audiences.
PROBLEM IT SEEKS TO SOLVE: The news business is dying, fast. More than 3 of every 4 Oregon newspaper jobs that existed in 2001 disappeared by 2023, according to the Oregon Employment Department. That trend continued last year, when Mississippi-based Carpenter Media Group bought two of the state’s largest chains, Pamplin Communications and EO Media, and then laid off dozens of staffers.
Proponents say the public depends on local reporters for basic information and accountability. They also say that Google and Facebook strip-mine content from news organizations and turn it into billions of dollars in advertising revenue without paying the organizations responsible for producing that content.
WHO SUPPORTS IT: A number of national journalism think tanks, the Oregon Newspaper Publishers Association, the Oregon Association of Broadcasters, Oregon Public Broadcasting, The Oregonian, and the Oregon chapter of the Society of Professional Journalists.
“In this pivotal moment for the future of sustainable and independent journalism, it is essential for states like Oregon to lead the fight to protect local news and push back against the monopolization and degradation of our information ecosystem,” testified Dr. Courtney Radsch director of the Center for Journalism & Liberty at the Open Markets Institute in Washington, D.C.
WHO OPPOSES IT: Google, Facebook, the Technology Association of Oregon, and the Computer & Communications Industry Association—and a host of libertarian-leaning individuals among the more than 100 people who gave testimony. “Overall, SB 686 undermines the principle of open access to information on the internet, significantly underrates the value of linking for publications online, and stands to repeat similar unsuccessful attempts seen in various parts of the world,” testified Aodhan Downey, a lobbyist for the CCIA.
Ken Doctor, a longtime industry executive and consultant and founder of Lookout Eugene-Springfield, testified that the threat of search engines blocking access to local news is real, as is the likelihood of protracted litigation, should the bill pass. Doctor, whose company received funding from the Google News Initiative, favors a variety of tax credits to support the industry. (Disclosure: WW‘s owners say they agree with Doctor.)
WHAT HAPPENS NEXT: SB 686 is scheduled for a work session April 30 at 1 pm in the Senate Rules Committee.
This story was produced by the Oregon Journalism Project, a nonprofit newsroom covering the state.