Faced with possibly paying for news, Google removes links to California news sites for some users

Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. level the playing field / ˈlɛv əl ðə ˈpleɪ ɪŋ fild / (idiom) – to create a fair competition by giving everyone a chance to succeed without unfair advantages
    Example:

    The new regulations aim to level the playing field for small businesses competing with larger corporations.


  2. lifeline / ˈlaɪfˌlaɪn / (n.) – something important that provides help to a person, organization, or business, to continue to exist, survive, or succeed
    Example:

    Access to clean water is a lifeline for communities facing extreme heat and water shortage.


  3. hub / hʌb / (n.) – a central area or main part of something where many different things are happening or coming together
    Example:

    The website becomes a hub for online shoppers, offering a wide variety of products from different sellers.


  4. nosedive / ˈnoʊzˌdaɪv / (v.) – a sudden and significant drop in price, value, or condition in a short amount of time
    Example:

    Many customers posted bad reviews of the product, causing sales to nosedive.


  5. upend / ʌpˈɛnd / (v.) – to disrupt something, leading to significant changes, failure, or loss in business or competition
    Example:

    The new regulations will upend the way businesses operate in the region, forcing them to adapt quickly.


Article

Read the text below.

Google on April 12 began removing California news websites from some people’s search results, a test that acted as a threat should the state Legislature pass a law requiring the search giant to pay media companies for linking to their content.


The California Legislature is considering a bill that would require tech giants, like Google, Facebook, and Microsoft, to pay a certain percentage of advertising revenue to media companies for linking to their content.


The bill aims to stop the loss of journalism jobs, which have been disappearing rapidly as legacy media companies have struggled to profit in the digital age.


Supporters said the legislation would help level the playing field between news publishers and large digital platforms and provide a “lifeline” to local news organizations, which rely heavily on Google’s search engine to distribute their content in the digital era. While Google’s search engine has become the hub of a digital advertisement empire that generates more than $200 billion annually, news publishers saw their advertising revenues nosedive significantly in the last few decades.


Richard Gingras, Google’s vice president of news, told state lawmakers that Google already made significant contributions to support local journalism. Google’s search engine should be seen as “the largest newsstand on Earth,” where it helps connect users to news websites more than 24 billion times per month. Google’s search engine holds an estimated 90% share of the market.


“This traffic in turn helps publishers make money by showing ads or attracting new subscribers,” he said, adding that it’s estimated that each click on a link from Google is worth 5 cents to 7 cents to a news website.


“By helping people find news stories, we help publishers of all sizes grow their audiences at no cost to them. (This bill) would upend that model,” Jaffer Zaidi, Google’s vice president for global news partnerships, wrote in the blog post.


News publishers would suffer and could lay off more journalists if Google completely blocks content from its search, but experts say Google also would take a financial hit without news content.


This article was provided by The Associated Press.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • Google began removing California news websites from some people’s search results to test the new bill, but it also acted as a threat should the state Legislature pass it. In your opinion, how might this move be considered a threat (ex. by controlling information, by showing the negative effects of the bill)? Why do you think Google did this (ex. to show Google’s influence on publishers, to put pressure on the Legislature)? Discuss.
  • Google helps publishers make money by connecting users to their websites, while Google profits from advertising revenues. What do you think of this model (ex. it’s mutually beneficial, it’s unfair)? What do you think would happen if this model were upended (ex. publishers’ sales would nosedive, Google would lose profit)? Discuss.

Discussion B

  • The bill aims to help legacy media companies that have struggled to profit in the digital age. Do you think that this struggle is something that can be avoided? Why or why not? Given that information, what do you think the future of journalism would look like? Discuss.
  • The bill would require tech giants to pay a certain percentage of advertising revenue to media companies for linking to their content. In your opinion, should the California Legislation pass the bill? Why or why not? Discuss.