On 14 February 2023, the California Journalism Preservation Act (AB 886) was introduced in the California State Assembly. The Act would mandate covered online platforms to pay a monthly journalism usage fee to eligible digital journalism providers upon request. The covered online platforms are defined as platforms with over 50 million users or subscribers or are controlled by a person with annual sales or capitalisation of USD 550 billion in the US market or more than 1 billion worldwide monthly active users. The fee will be established based on an arbitration process outlined in the Act and will be a percentage of the platform's monthly advertising revenue multiplied by the digital journalism provider's allocation share. Further, the Act would require digital journalism providers to allocate at least 70% of the funds they receive to news journalists and support staff. Additionally, providers are required to submit annual reports detailing fee usage and expenditure.
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