Lawmakers are working to address two interconnected issues: the growing dominance of Big Tech and the decline of local news. Last week, Sen. Amy Klobuchar chaired a hearing in Washington to discuss the challenge and is promoting legislation aimed at giving local news organizations more bargaining power against tech giants like Google and Meta.
As tech companies continue to profit from digital advertising, the Journalism Competition and Preservation Act would allow news outlets, no matter their size, to collectively negotiate with advertisers, strengthening their position against Big Tech.
Klobuchar’s father, Jim Klobuchar, had a long career as a local journalist in Minnesota, working as a sportswriter and columnist. Reflecting on her upbringing, Klobuchar recalled how essential newspapers and the First Amendment were to her family. However, she noted how many local papers had merged or shut down over the years, with the digital news boom accelerating closures in the past decade.
According to the Washington Post, around 2,200 local newspapers in the U.S. closed between 2005 and 2021. Meanwhile, tech giants like Google’s parent company, Alphabet, now generate over $200 billion in annual revenue, while local newspaper ad revenues have dropped dramatically, from $37 billion in 2018 to under $9 billion in 2021, as reported by Pew Research.
While Google’s earnings stem largely from market dynamics, Klobuchar believes lawmakers and regulators can intervene to give local media a fighting chance to survive and compete. “All we’re asking is that, whether big or small, news outlets should be able to negotiate together with these platforms,” she explained. “We don’t want a small paper in Lanesboro, Minnesota, trying to do it alone.”
CNN’s Brian Stelter expressed concerns that the bill might not get a vote, but Klobuchar emphasized the bipartisan backing the proposal has received, including support from Sen. Ken Buck (R-Col.) and Sen. John Kennedy (R-La.). “What unites us is the belief that we need to rejuvenate America’s economy,” Klobuchar said. “We need to promote competition and allow it to thrive.”
Although Klobuchar is not against Big Tech, highlighting her use of products like Fitbit and iPhones, she stressed the need for fair rules to prevent “anti-democracy behavior” and help local news organizations secure essential ad revenue. “This isn’t what the founders envisioned,” she said. “I don’t want to stop these companies from existing, but we need to ensure their platforms are fair and allow for competition.”
