The U.S. Senate Judiciary Committee voted to approve a bill to allow news organizations to band together to negotiate with Alphabet Inc's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google and Meta Platforms Inc (NASDAQ: META) Facebook and win more revenue.
The Democrat Amy Klobuchar-led bill is due for the Senate for their approval. A similar bill is before the U.S. House of Representatives.
The bill aimed to offer news and broadcast organizations more clout from the Big Tech, which for years exploited their content to attract traffic and ad revenue without fairly compensating the publishers, many of whom struggled financially.
Some progressive groups oppose this measure, including Public Knowledge, as it favors big broadcasters like News Corp (NASDAQ: NWSA), Sinclair Broadcast Group, Inc (NASDAQ: SBGI), and Comcast Corp (NASDAQ: CMCSA) NBCUniversal.
Technology industry trade groups that Facebook and Google belong to, like Computer & Communications Industry Association and NetChoice, also opposed the bill.
Earlier, Klobuchar blamed an "incredible onslaught of money" against a landmark antitrust bill to check the power of the U.S. Big Tech companies hindered the passing of the legislation.
Those dollars have funded advertisements designed to stir opposition to the American Innovation and Choice Online Act, she said.
In 2021, Australia passed a law to ensure "news media businesses are fairly remunerated for the content they generate."
Price Action: META shares traded lower by 1.15% at $141.18 in the premarket on the last check Friday.
Photo by Chetraruc from Pixabay
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