Buck Backs Journalism Bill; GOP Has Media Concerns

“We have to do something,” said Buck. “I love some of my colleagues that want to throw bombs and criticize every effort, but the reality is we’re losing news organizations all the time and can’t not do something. ... This gives news organizations four years to try to negotiate better” terms for ad revenue.

The Journalism Competition and Preservation Act (HR-1735) has five House Republican sponsors, including Buck. Sens. John Kennedy, R-La., and Rand Paul, R-Ky., signed companion legislation from Senate Antitrust Subcommittee Chair Amy Klobuchar, D-Minn. The bill would provide a four-year exemption from antitrust laws for news publishers and broadcasters, so they can negotiate terms for content and revenue with Big Tech.

Like Klobuchar, House Antitrust Subcommittee Chairman David Cicilline, D-R.I., told us he will push for a committee markup (see 2103110058). “It’s a really important issue, and I’m going to work hard to mark up this bill and likely an improved version with new suggestions” from the hearing, said Cicilline. “The critical issue is strong bipartisan support.”

Buck noted in opening remarks that Google announced in 2010 how much revenue it shares with publishers: Publishers got nearly 70% on content ads. In 2020, the Association of National Advertisers estimated publishers are made 30-40%, said Buck.

There’s the “allure” of trying to help local newspapers, House Judiciary Committee ranking member Jim Jordan, R-Ohio, told us: “I get that.” But he agreed with concerns raised by OutKick founder Clay Travis and journalist Glenn Greenwald about Big Tech working with big media to control access to information. “When we should be using antitrust law to deal with the huge problems of Big Tech, we’re going to give an exemption to big media?” Jordan asked. “I don’t know that that makes sense.” Enabling media companies to negotiate better could accelerate some of the worst industry trends, fueling hedge funds and media conglomerates, which would exacerbate the problem, said Greenwald: Sometimes, these piecemeal solutions make the situation worse. Rep. Greg Steube, R-Fla., raised the same concerns with Jordan during the hearing.

Testimony

Google and Facebook are the media industry’s regulators, said News Media Alliance CEO David Chavern: They regulate every interaction with consumers and suppress the value of content. The audience for news is bigger than ever, but finances are much worse, said Chavern: Digital intermediaries take most of that value, and that has to be adjusted.

More regulation to remove hedge funds here would smooth entry for news companies and strengthen competition against big media, said NewsGuild-CWA President Jon Schleuss. Broadcast viewership has shifted more to online viewing, testified NAB Television Board Chair Emily Barr: Media organizations are spending more money to produce online content without the same revenue return.

Microsoft endorses the legislation, President Brad Smith announced at the hearing. Several lawmakers noted it’s interesting because it weakens Microsoft’s bargaining position. Rep. Darrell Issa, R-Calif., raised concerns about the bill, saying that when government picks winners and losers, there’s no end in sight. Smith said the legislation isn’t about picking winners and losers, and what Australia is finding with similar legislation is that small publishers negotiate collectively. Collective action primarily benefits the ones who can’t assert their value, meaning small and local publishers, said Chavern. Anything the major media companies negotiate will be available to smaller publishers and broadcasters, said Cicilline.

Cicilline noted Smith provided “a very valuable briefing” to the subcommittee during last session’s Big Tech investigation. Rep. Pramila Jayapal, D-Wash., introduced Smith before his testimony, calling him a “fellow Washingtonian who has done a tremendous amount for” the region, state and country.

At the end of the hearing, Buck asked Cicilline if various news outlets will be covered as a “news content creator," including the Daily Caller, Daily Wire, Washington Examiner, Washington Times, Breitbart and The Intercept. Buck asked if Breitbart, when it was started in a garage, would have been covered. All those organizations are covered, said Cicilline. Buck asked if there’s any doubt, will the chairman entertain amendments at markup? “I am always willing to work with you,” said Cicilline. “You have always acted in good faith,” and he's happy to work on any useful amendments or clarifications. The subcommittee scheduled a third hearing on the topic for 2 p.m. Thursday in 2141 Rayburn.

Giving “news publishers an antitrust exemption” is “just doubling down on failed policies,” said Computer & Communications Industry Association President Matt Schruers. “Digital services offer an additional way for internet users to enable publishers, journalists, and other content producers of all sizes to reach a larger, global audience at a fraction of the cost of traditional formats.” Legalizing “price-fixing agreements and collusive practices among news publishers” would make antitrust enforcement less effective, said Information Technology and Innovation Foundation Antitrust Director Aurelien Portuese: It would result in less competition and innovation.

Free Press Action co-CEO Craig Aaron is against the proposal. “A tax on the massively profitable online-advertising sector is a much better legislative approach than facilitating the transfer of money from Mark Zuckerberg to Rupert Murdoch,” he said, referring to Facebook and News Corp founders.