Canadian Prime Minister Justin Trudeau accused Alphabet's Google and Meta Platforms of employing "bullying tactics" in response to Canadian efforts to secure financial support for news publishers.

The proposed legislation aims to compel internet giants such as Google and Meta's Facebook to negotiate commercial agreements and compensate publishers for their content.

Google and Facebook argue that the provisions outlined in the bill, known as the "Online News Act," are not sustainable for their businesses. As a potential response, both companies conducted tests this year to restrict some users in Canada from accessing or sharing news content if the legislation is enacted in its current form.

Trudeau addressed the issue during a press conference in Ottawa, stating that the decision by these internet giants to limit Canadians' access to local news instead of fairly compensating publishers is problematic. He criticised their adoption of bullying tactics and affirmed that such approaches would not succeed.

The bill was introduced in April 2022 and shares similarities with Australia's groundbreaking law passed in 2021. Google argues that the bill's regulations are more stringent than those implemented in Australia and Europe. In response, the company proposed amendments to align with international norms and address its concerns.

Google spokesperson Shay Purdy expressed the company's position, stating that they have put forward reasonable and practical solutions to make the bill function as intended while increasing investments in the Canadian news ecosystem. Purdy also emphasised that the bill currently suffers from serious flaws that render it unworkable for its products and services.

The legislation successfully passed Canada's House of Commons in December and is currently in the unelected upper chamber, which rarely blocks legislation approved by the lower house.

The Canadian media industry seeks stricter regulation of technology companies to prevent them from overshadowing news organisations in the online advertising market. Trudeau emphasised the importance of ensuring that highly profitable corporations contribute to strengthening democracy while independent news outlets across the country face difficulties.

Last week, Meta expressed its view that the bill is fundamentally flawed, asserting that news content holds no economic value for its platforms.