Big Tech’s Fight
Big Tech companies are opposing AB-886 because it challenges their profit models. They argue that the bill imposes a "link tax" and benefits hedge funds, but these claims are misleading. The truth is, AB-886 is designed to ensure fair compensation for the content that local news outlets produce, which digital giants profit from.
FAQ: Addressing Big Tech's Arguments
Is AB-886 a "link tax"?
No, AB-886 is not a tax. It is a fee for digital advertising giants to pay for the news content they use to generate revenue. This fee supports local journalism and ensures transparency in how funds are used.
Will AB-886 benefit hedge funds?
AB-886 includes provisions that mandate 70% of the funds be reinvested in journalism jobs in California, with public transparency reports to ensure accountability.
Does AB-886 support small local news outlets?
Yes, AB-886 is designed to help all local news outlets by providing them with a fair share of the advertising revenue generated by their content.