Google to block news in Canada over law on paying publishers:
On Thursday, Google announced its plans to block Canadian news on its platform within Canada, aligning with Facebook’s recent campaign against a new law mandating payments to local news publishers. As the owner of Google, Alphabet intends to remove links to Canadian news from search results and other products within the country, starting approximately six months from now. This decision follows a similar announcement made by Meta Platforms Inc, the parent company of Facebook, after the passage of Bill C-18, also known as the Online News Act.
Canada’s media industry has advocated for increased regulation of internet giants to enable news businesses to recover from financial losses incurred as Facebook and Google gained a larger share of the online advertising market. Last year, Canada’s independent budgetary watchdog estimated that news businesses could receive approximately CAD 330 million ($249 million) per year through mandated deals under the legislation.
Heritage Minister Pablo Rodriguez, who introduced the bill, has clarified that the platforms are not immediately bound by the act, and the government is open to consulting with them on the regulatory and implementation process. However, Facebook and Google have deemed the proposed regulations unsustainable for their businesses and have indicated for months that they might suspend news availability in Canada unless the act is amended.
Despite the pushback, Canada’s federal government has resisted calls for changes and Prime Minister Justin Trudeau accused the companies of employing “bullying tactics” in June. Rodriguez expressed disappointment in the actions of big tech companies, asserting that they prefer blocking access to quality local news for Canadians instead of paying their fair share to news organizations. He criticized their irresponsibility and detachment, particularly when these companies generate billions of dollars from Canadian users.
Google’s President of Global Affairs, Kent Walker, stated in a blog post that the law remains unworkable and that the company does not believe the regulatory process can address the structural issues within the legislation. Walker further conveyed that Google has informed the government about its decision to remove links to Canadian news from its Search, News, and Discover products when the law comes into effect.
The specific news outlets affected will be determined based on the government’s definition of “eligible news businesses” once the rules for implementation are finalized.
In addition to blocking Canadian news on its platform, Google has announced the discontinuation of its News Showcase program in Canada. This program involves agreements between Google and 150 news publications across the country, including a contract with Reuters to produce News Showcase panels specifically for Canada.
The decision comes as a result of a new law in Canada that mandates online platforms to negotiate with news publishers and compensate them for their content. Notably, a similar law was passed in Australia in 2021, which led to Google and Facebook threatening to limit their services. However, both companies reached agreements with Australian media companies after the legislation was amended.
Google argues that Canada’s law is more expansive than those in Australia and Europe, as it puts a monetary value on news story links displayed in search results and can potentially apply to outlets that do not produce news. The company had proposed an alternative approach, suggesting that payment should be based on the display of news content itself rather than just links. Google also suggested that only businesses adhering to journalistic standards should be eligible for compensation.
The dispute highlights the ongoing tension between tech giants and news publishers, as well as the broader discussion around the fair distribution of revenue within the digital news ecosystem. The media industry in Canada has been advocating for tighter regulation to address the financial losses suffered by news organizations due to the dominance of Facebook and Google in the online advertising market.
The independent budgetary watchdog in Canada estimated that news businesses could potentially receive around CAD 330 million per year through the mandated deals under the new legislation.
While the Canadian government has expressed a willingness to consult with the platforms on the regulatory and implementation process, Google’s decision to block Canadian news and end its News Showcase program reflects its contention that the law is unworkable and raises concerns about its broader implications.
The specific impact on news outlets and the availability of news content in Canada will depend on how the government’s definition of “eligible news businesses” is ultimately applied. As the situation unfolds, it remains to be seen whether further negotiations or amendments to the law will be pursued to address the concerns raised by Google and other tech companies.
