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Google to block Canadian news due to publisher payment law
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Google said it would block Canadian news on its platform within Canada, in a similar move to Facebook, as a response to a new law mandating payments to local news publishers.
In approximately six months, Google's search results and other products in the country will no longer include links to Canadian news.
The introduction of Bill C-18, known as the Online News Act, prompted Facebook owner Meta to also make this announcement last week.
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The Canadian media industry has advocated for stricter regulations on internet giants.
This would enable news organizations to recover financial losses suffered as Facebook and Google secured a larger share of the online advertising market.
Canada's independent budgetary watchdog estimated that news businesses could potentially receive around C$330 million ($249 million) annually through deals mandated by the legislation.
Heritage Minister Pablo Rodriguez, who introduced the bill, said the platforms are not immediately bound by the act.
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Rodriguez added that the government is open to consulting with them regarding regulation and implementation.
Facebook and Google have argued the proposed regulations are unsustainable for their businesses.
They have signaled for months that news availability in Canada could be terminated unless the act was amended.
However, the Canadian federal government has resisted calls for changes, with Prime Minister Justin Trudeau accusing the companies of employing "bullying tactics."
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Rodriguez criticized Google for prioritizing blocking access to quality local news for Canadians rather than paying their fair share to news organizations.
Google's president of global affairs, Kent Walker, said in a blog post the law is unworkable, and the company does not believe the regulatory process can address the "structural issues with the legislation."
Under the finalized rules for implementation, the news outlets affected by Google's decision will be determined based on the government's definition of "eligible news businesses."
Furthermore, Google will discontinue its News Showcase program in Canada, which currently has agreements with 150 news publications across the country.
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The Online News Act mandates online platforms to negotiate with news publishers and compensate them for their content.
A similar law in Australia led to Google and Facebook threatening to limit their services, but they eventually reached agreements with Australian media companies after the legislation was amended.
Google has argued Canada's law is broader than those in Australia and Europe, as it sets a price on news story links displayed in search results and can apply to outlets that do not produce news.
The firm proposed the payment be based on the display of news content rather than links and limited to businesses that adhere to journalistic standards.
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