California Lawmakers Propose Bill Targeting Big Tech's Data Extraction
California lawmakers have proposed SB 1327, a bill that targets large online platforms like Meta, Google, and Amazon. The bill aims to impose a 'Data Extraction Mitigation Fee' on these companies, but its impact on small businesses and journalism remains a topic of debate.
The bill, introduced recently, applies to companies grossing over $2.5 billion in advertising revenue and involved in data collection and digital bartering. However, data brokers, despite their role in data collection, are exempt. This has raised questions about the bill's scope and effectiveness.
Advertising revenues currently subsidize free or low-cost internet services. The bill exempts news media, but there are concerns about potential carve-outs for large broadcasting conglomerates and hedge funds. A coalition letter highlighted the impact on small businesses, with 85% of startups relying on digital advertising. Critics argue that the bill may not address local journalism disruption and could harm online information sharing.
SB 1327 could have significant implications for small businesses, potentially increasing consumer costs or attention to ads, and limiting advertising opportunities. The bill's supporters argue it targets large online platforms, while opponents worry it could discourage business in California and harm the state's startup ecosystem.
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