Google to Restrict News Access in Canada Over Payment Law: Following Meta's Lead

In a move following Meta's lead, Google announced its intention to prevent Canadian news from appearing on its platform in Canada. This decision comes as a response to a new law, the Online News Act or Bill C-18, which mandates payments to local news publishers.

Google plans to eliminate Canadian news links from search results and other products within approximately six months of the law becoming effective. This development highlights the ongoing battle between internet giants and governments over regulations and fair compensation for news organizations.

Facebook's Precedent and Industry Demands

Meta Platforms, the owner of Facebook, previously declared a similar stance after the Online News Act was passed. The Canadian media industry has been advocating for stricter regulations on internet giants like Facebook and Google, aiming to help news organizations recover their financial losses.

The legislation mandates payments by these platforms to news businesses, potentially amounting to around 330 million Canadian dollars annually, as estimated by Canada's independent budgetary watchdog last year.

Government's Response and Tech Companies' Arguments

Heritage Minister Pablo Rodriguez, the proponent of the bill, clarified that the platforms are not immediately bound by the act and expressed openness to consulting with them during the regulatory and implementation process. Facebook and Google have argued that the proposed measures are unsustainable for their businesses.

They have hinted for months that news availability in Canada could cease unless modifications are made to the act. Prime Minister Justin Trudeau criticized the companies in June, accusing them of employing "bullying tactics."

Kent Walker, Google's president of global affairs, emphasized in a blog post that the law remains impractical and that the company believes the regulatory process cannot address the structural issues with the legislation.

Google has informed the government that, once the law takes effect, it will have to remove links to Canadian news from its Search, News, and Discover products in Canada. The specific news outlets affected by Google's decision will depend on the government's definition of "eligible news businesses" once the rules are finalized.

Impact on Google's News Showcase Program

In addition to blocking Canadian news links, Google will discontinue its News Showcase program in Canada. This program involves agreements with 150 news publications across the country, including a contract with Reuters to produce News Showcase panels. The termination of this program further reduces the visibility and accessibility of Canadian news on Google's platform.

Comparison with Similar Laws and Google's Proposals

The Online News Act in Canada is reminiscent of a similar law enacted in Australia in 2021, which also led to threats from Google and Facebook to limit their services. However, after revisions were made to the legislation, both companies reached agreements with Australian media companies.

Google argues that Canada's law is broader than those in Australia and Europe since it places a value on news story links displayed in search results, potentially applying to outlets that do not generate news content.

Google has proposed that payments be based on the display of news content rather than links and that only businesses adhering to journalistic standards be eligible for compensation.

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