Sherman Cosponsors Bill to Help Address Big Tech's Power over News Organizations

Press Release

Today, Congressman Brad Sherman (D-Sherman Oaks) agreed to cosponsor H.R. 1735 - The Journalism Competition and Preservation Act to address "Big Tech" online platforms' power over news organizations. The bill provides publishers and broadcasters a temporary safe harbor to negotiate collectively for compensation from online platforms. During that period, publishers could partner up to withhold their content and collectively negotiate with platforms without being liable under antitrust laws.

"A free and robust press is the mortar that binds together our democratic society," said Congressman Sherman. "But today, with online platforms' monopolization of news content, our free press faces an extinction-level crisis at a time when vigorous journalism is needed now more than ever. The JCPA is a strong, bipartisan bill that would allow news organizations to jointly negotiate fair terms for access to their content by Google, Facebook, and other dominant platforms."

Today the journalism sector, that is vital to our democratic society, is collapsing. The number of newsroom jobs has declined by more than 30,000 since 2008, while local news deserts continue to grow and spread. A major factor contributing to journalism's current economic peril is the rise of powerful internet platforms, like Google and Facebook, who seize news content and enrich their platforms while not paying for the labor and investment required to report the news, leaving the free press unable to cover their costs and continue serving the public.

Our first step to address this crisis is to stand up for our journalists and reporters and require these giant internet platforms to enter good faith negotiations with eligible news organizations. The Journalism Competition and Preservation Act represents this first major step towards protecting our free press by removing legal obstacles to news organizations' ability to negotiate collectively and secure fair terms from gatekeeper platforms that regularly access news content without paying for its value. The legislation also allows news publishers to demand arbitration if they reach an impasse in those negotiations.

Specifically, the Journalism Competition and Preservation Act would:

Empower eligible digital journalism providers--that is, news publishers with fewer than 1,500 exclusive full-time employees and non-network news broadcasters that engage in standard newsgathering practices--to form joint negotiation entities to collectively negotiate with a covered platform over the terms and conditions of the covered platform's access to digital news content.

Require covered platforms--which are online platforms that have at least 50 million U.S.-based users or subscribers and are owned or controlled by a person that has either net annual sales or market capitalization greater than $550 billion or at least 1 billion worldwide monthly active users--to negotiate in good faith with the eligible news organizations.

Enable non-broadcaster news publishers to demand final-offer arbitration if their joint negotiation with a covered platform fails to result in an agreement after six months.

Create a limited safe harbor from federal and state antitrust laws for eligible digital journalism providers that allows them to participate in joint negotiations and arbitration and, as part of those negotiations, to jointly withhold their content from a covered platform.

Prohibit discrimination by a joint negotiation entity or a covered platform against an eligible digital journalism provider based on its size or the view expressed in its content and provide a private right of action for violations of this prohibition.

Prohibit retaliation by a covered platform against eligible digital journalism providers for participating in joint negotiations or arbitration and provide a private right of action for violations of this prohibition.

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