PORTLAND, Oregon – A legislative effort in Oregon aimed at compelling major technology platforms, including Google and Meta, to compensate local news outlets for the use of their content has failed, a development widely seen as a significant victory for Silicon Valley and a fresh blow to the struggling regional journalism industry.
Senate Bill 686 (SB 686), which sought to establish a framework requiring dominant digital platforms to enter negotiations or arbitration with Oregon news organizations, died in the state Senate last week. The bill, partially inspired by similar legislation enacted in Australia, proposed a system under which tech companies would collectively pay an estimated $122 million annually to Oregon news outlets.
The Legislative Proposal
The core intent of SB 686 was to address the perceived imbalance of power and value extraction in the digital news ecosystem. Proponents argued that dominant tech platforms benefit immensely from the news content produced by local journalists and organizations, which draws users and engagement to their sites and services. The bill sought to create a mechanism – either through direct negotiation on compensation deals or mandated arbitration if talks failed – to ensure that a portion of the value derived by tech companies from this news content was returned to its creators.
The estimated figure of $122 million per year was intended to represent a measure of the value local news brings to these platforms in Oregon, aiming to provide a vital new revenue stream for news outlets facing severe economic pressures.
Decline of Local Journalism in Oregon
The backdrop to SB 686 is a stark reality for Oregon’s local news landscape. Over the past two decades, the state has witnessed the closure of 18 news outlets, and the number of local journalists has plummeted by 75 percent. This contraction has left communities with reduced access to critical local information and accountability reporting. Industry analysts and observers anticipate further closures and job losses in the absence of new sustainable funding models.
Supporters of the bill argued that the compensation from tech platforms could provide a crucial lifeline, helping struggling outlets increase traffic, generate revenue, and ultimately enhance their economic viability and ability to serve their communities effectively.
The Vote and Political Divide
Despite drawing considerable attention and support from a coalition of news organizations and advocates, SB 686 faced significant opposition. The bill ultimately failed to pass the Senate, with a slim majority of state senators voting against it.
State Senator Khanh Pham served as the lead sponsor of the legislation. Following its defeat, Senator Pham expressed determination to continue advocating for measures to support local journalism, vowing to keep fighting for the principles embedded in SB 686.
Opponents of the bill voiced a range of concerns. State Senator Dan Bonham, the minority leader from The Dalles, was among those who cited potential legal challenges to the proposal. Critics also highlighted threats reportedly made by tech companies during the legislative process, suggesting they might restrict or block Oregonians’ access to news content on their platforms if the bill were to pass – a tactic reportedly considered or implemented in other jurisdictions facing similar legislative efforts.
Implications of the Outcome
For many within the news industry and its allied sectors, the failure of SB 686 is being interpreted as a definitive victory for the powerful technology corporations that lobbied against it. These companies have consistently argued against such compensation schemes, asserting that they already drive valuable traffic to news websites and that the proposals misrepresent the relationship between platforms and publishers.
Conversely, the outcome represents a significant loss for Oregon’s local news outlets, which continue to grapple with dwindling advertising revenue, changing consumption habits, and the dominance of digital platforms in the distribution of information. Without this proposed new revenue stream, the economic challenges facing these organizations are likely to persist, potentially accelerating the trend of closures and journalist layoffs.
Looking Ahead
The defeat of SB 686 underscores the complex challenges involved in crafting policy solutions to support local journalism in the digital age. While the specific legislative effort in Oregon has stalled, the underlying issues it sought to address – the economic sustainability of local news and the relationship between news publishers and dominant online platforms – remain unresolved.
Senator Pham’s pledge to continue the fight suggests that legislative efforts to compel tech compensation for news content may reappear in future sessions, potentially in a revised form that seeks to address the legal and economic concerns raised during the debate over SB 686. However, for now, Oregon’s local news outlets must continue navigating a difficult economic climate without the financial support envisioned by the failed bill.
The outcome in Oregon adds another chapter to the ongoing global debate about how to ensure a healthy, vibrant local news ecosystem in an era dominated by digital intermediaries. It highlights the significant hurdles faced by policymakers attempting to rebalance the economic relationship between content creators and the platforms that distribute their work.
