In a strategic move, Google has announced that it will start removing links to California news websites as part of a "short term test for a small percentage of California users." This decision comes in response to the impending California Journalism Preservation Act (CJPA) which, if passed, would require Google to pay fees for linking Californians to news articles.

Jaffer Zaidi, Google VP of global news partnerships, explained in a recent blog post that the CJPA could have significant implications for the services Google offers to Californians and the traffic it provides to California publishers. The testing process will involve the removal of links to California news websites, potentially covered by the CJPA, in order to analyze the impact of the legislation on Google's product experience.

As part of this response, Google also intends to halt further investments in the California news ecosystem, including initiatives like Google News Showcase, product and licensing programs for news organizations, and the Google News Initiative.

The crux of the conflict lies in Google's influence on journalism. Currently, Google and Meta receive a larger share of online advertising revenue compared to publishers. According to an Electronic Frontier Foundation report, half of every ad dollar is consumed by fees, while subscriptions face app store taxes.

Supporters of the California bill argue that it grants publishers leverage to achieve more equitable profit sharing. On the other hand, Google asserts that it already drives substantial traffic to publishers and claims that this legislation favors media conglomerates, potentially leading to further decline of local newspapers.

Determining the exact amount of money Google generates from news content is challenging. Although Google News itself does not host ads, media companies contend that linking out to news content benefits the platform as a whole. A recent study estimates that should the Journalism Competition and Preservation Act, a national bill, take effect, Google would owe US publishers approximately $10 to 12 billion annually.

This is not the first time Google has faced opposition to paying media outlets for news. In 2014, Google withdrew from Spain after a similar measure was implemented, but returned after an eight-year absence in 2022. The tech giant also threatened to withdraw from Australia in 2020 when the country introduced the News Media Bargaining Code. Ultimately, Google reached a deal with several Australian publishers, inspiring other countries like the US, UK, Canada, and New Zealand to pursue similar legislation.

Google's current move to test the removal of links to California news websites reflects its ongoing struggle to navigate the complex relationship between technology platforms, news publishers, and lawmakers. As the CJPA hangs in the balance, the repercussions of this test will be closely monitored by stakeholders invested in the future of journalism and the evolving digital landscape.