WASHINGTON: The U.S. Federal Trade Commission needs new powers to protect the struggling U.S. local news industry from unfair competition from large technology companies, a senior U.S. lawmaker said.
Google scrapes the web to get headlines and story snippets, while Facebook features content posted by publishers or users and"receives billions in profits from the news content created by others," the report said. U.S. local news outlets, which already faced a decline in print revenue, have seen advertising revenue plummet in the face of the COVID pandemic. The report said U.S. newspapers would most likely cut at least 7,000 employees in 2020, leaving only about 30,000 newsroom jobs.
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