Home » US business news » Google agrees to pay $73.6 million to prevent news ban in Canada
Google agrees to pay $73.6 million to prevent news ban in Canada
https://www.whatjobs.com/news/usa/us-business-news/google-agrees-to-pay-73-6-million-to-prevent-news-ban-in-canada
By Nithya Bose in US business news, posted November 30, 2023
Google has agreed a settlement with the Canadian government over a law that would require it to pay news organizations for links to the content.
The tech giant will pay 100 million Canadian dollars, equivalent to $73.6 million, adjusted for inflation, into a fund, said Canada’s Heritage Minister Pascale St-Onge.
This settlement ensures Google will maintain its practice of providing links to Canadian news.
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It avoided a potential disruption that could have occurred if the company had followed through on its threat to stop linking to news content starting December 19.
This also coincides with the law's intended implementation date.
The contentious law, known as Bill C-18 received approval from Canadian lawmakers in June.
It targets tech companies like Google and Meta, seeking compensation for media outlets for including news links on their platforms.
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Meta still has unresolved issues
While Google resolved the issue, Facebook parent Meta remains uninvolved in the agreement and has already taken steps to block news links for Canadian users.
Tech companies argue that such a law places a monetary value on freely shared links.
It could contradict copyright laws and challenge the fundamental concept of an open internet.
An open internet is where users can access and connect with content without limitations.
Kent Walker, President of Global Affairs at Google and Alphabet, said: “Following extensive discussions, we are pleased that the Government of Canada has committed to addressing our core issues with Bill C-18.”
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This resolution safeguards the continued appearance of news content in Google search results.
It also marks a departure from a 2014 incident when Google suspended its Google News service in Spain.
It was due to a law requiring payment to publishers for featuring portions of their content.
Google News was reinstated in Spain after legislative changes allowed direct negotiations between the platform and media outlets.
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