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| By Jeremy B. White, Lara Korte, Matthew Brown and Ramon Castanos |
Presented by California Resources Corporation |
THE BUZZ: Meta and Google have been blamed for helping to break the news industry — and a new California bill compelling them to pay up has created some unexpected alliances. The digital era has forced traditional publishers and online platforms into a strained relationship. News outlets in recent years have relied on search and social to drive readership, but many journalists fault those platforms for displaying reporters’ work without compensating them. Tech industry profits have risen as newsroom jobs declined — a sign, to critics, of an unbalanced financial arrangement that is fundamentally detrimental to both the media and democracy. Assemblymember Buffy Wicks wants to reroute the flow of money from flush tech companies to strapped newspapers. Her bill, which gets its first hearing today, would require large platforms to send news organizations a share of the revenue from advertising that draws on reported content. Wicks has framed it as a lifeline to a vital but financially reeling industry (The bill’s supporters include the California News Publishers Association, of which POLITICO is not a member.). “You look at the reality of the power companies like Facebook and Google have — their algorithm determines what we all see everyday” while generating huge revenue, Wicks said in an interview. “Every step of the way, the news industry is in a state of weakness in dealing with the monopolization of these platforms” The idea has created some strange ideological overlaps. A progressive Berkeley Democrat is embracing a model that rhymes with ones advanced by conservative media mogul Rupert Murdoch (although Wicks said she was “not interested in a Rupert Murdoch versus Mark Zuckerberg fight”) and Republican Sen. Ted Cruz of Texas. It has also united anticipated Silicon Valley foes with civil liberty and online freedom advocates who fear the measure backfiring. Heavyweight tech companies have fought this fight before. Meta warned Congress it might respond to a federal law creating a "cartel-like entity” by erasing content from its platform, as Google did preemptively to block a bill in Canada (A Meta rep asked about the California bill referred to its previous warnings about pulling content.). Industry groups with substantial Sacramento sway have linked arms with the Chamber of Commerce in opposing Wicks’ bill. So have the American Civil Liberties Union and the Electronic Frontier Foundation. The ACLU warns anti-retaliation provisions would trespass the First Amendment by effectively forcing platforms to publish content. The EFF fears it could reward clickbait and volume over news value — a concern shared by the CEO of CalMatters — while further entrenching journalism’s reliance on the tech industry. Some argue federal antitrust legislation would be preferable. But Wicks is not waiting on Congress. Her bill sits at the confluence of two trends: Sacramento’s desire to moderate Big Tech’s societal impacts and the long quest to save the journalism industry. The former has produced mixed results — last year the Legislature passed Wicks’ bill mandating kid-friendly social media design, but the tech industry thwarted a bill penalizing platforms for harming kids (A new one is moving this year.). As for the latter? Many have sought an antidote. Wicks believes it lies with the same firms that have helped accelerate the freefall. BUENOS DÍAS, good Tuesday morning. Another contentious bill getting its first hearing today: Sen. Aisha Wahab’s effort to prohibit discrimination on the basis of caste, which has provoked fierce opposition from some Indian-American and Hindu groups. Got a tip or story idea for California Playbook? Hit us up at jwhite@politico.com and lkorte@politico.com or follow us on Twitter @JeremyBWhite and @Lara_Korte.
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| A message from California Resources Corporation: California Resources Corporation (CRC) is committed to the energy transition and advancing our Net Zero future. To help meet California’s ambitious emissions reduction goals, CRC’s Carbon TerraVault provides a real solution that enables the capture, transport and permanent storage of carbon dioxide deep underground. These services help mitigate climate change by offering both immediate decarbonization benefits and a long-term solution to reach and maintain carbon neutrality. CRC's CarbonTerraVault |
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WHERE’S GAVIN? At the reborn-by-rains Tulare Lake, which is threatening to engulf nearby homes, farms and a prison. QUOTE OF THE DAY: “I feel sorry for the fans in Oakland, I do, I really do. But for the city of Oakland to point fingers at John Fisher, it’s just not fair. … We have shown an unbelievable commitment to the fans in Oakland by exhausting every possible opportunity to try to get something done in Oakland. Unfortunately, the government doesn't seem to have the will to get it done.” MLB Commissioner Rob Manfred on the Athletics forsaking Oakland for Vegas. TWEET OF THE DAY:
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WE’RE HIRING — POLITICO is embarking on an exciting expansion in the Golden State and looking for another journalist to join our growing team as a California Playbook author. More in the job description here.
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| PLAYBOOK MEET & GREET! We did it before and we're doing it again! Join California Playbook and POLITICO’s growing team in Sacramento at Smic’s Sip & Quip on Thursday, May 11, 2023, for an evening of cocktails and conversation. As POLITICO expands in California, we're convening our most influential readers in Sacramento and beyond. Swing by and have a cocktail on us—you never know who you might run into! Register here. |
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 | TOP TALKERS | |
— “He threatened to kill his son. He was still able to purchase a gun. Now, a bereaved mother asks how,” by the Los Angeles Times’ Hailey Branson-Potts: “Camara is now suing the California Department of Justice, which has denied her requests for details about the gun sale and the background check. ‘Why are they still protecting him?’ she said of her ex-husband last month, on the third anniversary of her son’s death.”
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| CAMPAIGN MODE | |
— “As talk of a recall grows, supporters of Alameda County DA Pamela Price push back,” by The San Francisco Standard’s Ida Mojadad: “More than 100 of Price’s supporters rallied in Downtown Oakland on Sunday to emphasize their approval of the new DA and her mandate from voters to instill the reforms she campaigned on. Media criticism, they allege, has been excessively negative—even biased.”
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| A message from California Resources Corporation:   |
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| CALIFORNIA AND THE CAPITOL CORRIDOR | |
— “Amazon delivery firm allows its drivers to unionize with the Teamsters,” by The Washington Post’s Lauren Kaori Gurley and Caroline O'Donovan: “Though the delivery drivers wear Amazon branded vests, drive Amazon branded vans and deliver exclusively Amazon packages, they are not directly employed by Amazon. Their employer — a third-party delivery company — recognized their union and negotiated their contract, not Amazon.” — “Fears grow as floodwaters threaten to drown this California city and prison complex,” by the San Francisco Chronicle’s Jessica Garrison, Susanne Rust and Ian James: “Anxious residents in this Central Valley city of 22,000 know all too well that the only thing keeping this growing lake from inundating their homes and businesses — as well as one of the state’s largest and most crowded prison complexes — is a 14.5-mile-long dirt levee that rises up from sodden earth to the west, south and east.” — “The Big Melt has begun. Now California's gushing rivers pose mortal danger,” by the San Francisco Chronicle’s Gregory Thomas: “Spring melt nourishes the state’s rivers every year, usually peaking between April and June. But this year waterways are going to run much higher, faster, colder and for longer than they normally would, posing risks to the hordes of summer lovers who raft, kayak, swim and fish them.” — “Cracks in California labor coalition raise hopes for YIMBY breakthrough on housing bill,” by CalMatters’ Ben Christopher: “The State Building and Construction Trades Council, an umbrella group representing hundreds of thousands of bricklaying, pipefitting, bulldozing and foundation-laying union members across the state, has stood as a formidable political force that even governors have been forced to contend with.”
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| GO INSIDE THE 2023 MILKEN INSTITUTE GLOBAL CONFERENCE: POLITICO is proud to partner with the Milken Institute to produce a special edition "Global Insider" newsletter featuring exclusive coverage, insider nuggets and unparalleled insights from the 2023 Global Conference, which will convene leaders in health, finance, politics, philanthropy and entertainment from April 30-May 3. This year’s theme, Advancing a Thriving World, will challenge and inspire attendees to lean into building an optimistic coalition capable of tackling the issues and inequities we collectively face. Don’t miss a thing — subscribe today for a front row seat. |
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| BIDEN, HARRIS AND THE HILL | |
— Biden dives back in, announces reelection bid, by POLITICO's Christopher Cadelago and Jonathan Lemire: President Joe Biden this morning formally launched his campaign for a second term in 2024, asking voters to keep him in office and “finish the job” of an historic American recovery that started after he vanquished Donald Trump in 2020. — “Las Vegas-to-California bullet train gets bipartisan backing,” by The Associated Press’ Ken Ritter: “All six of Nevada’s elected federal lawmakers and four House members from California sent the letter to U.S. Transportation Secretary Pete Buttigieg. They said they’re on board with a proposal from Brightline West to spend more than $10 billion to lay tracks along the Interstate 15 corridor.”
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| SILICON VALLEYLAND | |
— Apple scores major victory against Epic Games in antitrust appeal, by POLITICO’s Josh Sisco: In an 87-page opinion issued Monday, U.S. Circuit Judge Milan Smith wrote that a lower court judge correctly ruled Apple is not liable under federal antitrust law for conduct related to its App Store. The ruling was issued by the 9th U.S. Circuit Court of Appeals following a hearing in November.
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| MIXTAPE | |
— “The first West Coast Trader Joe's to unionize is in Oakland,” by The Oaklandside’s Eve Batey. — “L.A. to pay $38 million over downed power line that electrocuted father and daughter,” by the Los Angeles Times’ David Zahniser and Dakota Smith.
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| A message from California Resources Corporation: California Resources Corporation (CRC) is committed to our Net Zero future and helping California meet its emissions reduction goals under the Paris Climate Accord. CRC’s 2045 Full-Scope Net Zero Goal for Scope 1, 2 and 3 emissions places us among a select few industry peers to include scope 3 emissions in their Net Zero goal.
CRC’s Carbon TerraVault offers a real solution for reaching and maintaining carbon neutrality through services that include the capture, transport and permanent storage of carbon dioxide deep underground - supporting California in its efforts to combat climate change. CRC is dedicated to developing innovative solutions like Carbon TerraVault to advance the energy transition, and helping decarbonize our local economies in alignment with the state’s ambitious climate goals.
Get The Facts on CRC's Carbon TerraVault |
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CALIFORNIA POLICY IS ALWAYS CHANGING: Know your next move. From Sacramento to Silicon Valley, POLITICO California Pro provides policy professionals with the in-depth reporting and tools they need to get ahead of policy trends and political developments shaping the Golden State. To learn more about the exclusive insight and analysis this subscriber-only service offers, click here. Want to make an impact? POLITICO California has a variety of solutions available for partners looking to reach and activate the most influential people in the Golden State. Have a petition you want signed? A cause you’re promoting? Seeking to increase brand awareness amongst this key audience? Share your message with our influential readers to foster engagement and drive action. Contact Jesse Shapiro to find out how: jshapiro@politico.com. |
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