Alphabet-owned Google will remove links to Canadian news
from search results and other products in Canada when the law takes effect in
about six months.
Facebook-owner Meta Platforms made a similar announcement
last week after the passage of Bill C-18, or the Online News Act.
Canada's media industry has called for tighter regulation of
Internet giants to allow news businesses to recoup financial losses suffered in
the years that Facebook and Google gained a greater share of the online
advertising market.
The independent budgetary watchdog in Canada estimated last
year that news businesses could receive about CAD 330 million per year from
deals mandated under the legislation.
Heritage Minister Pablo Rodriguez, who introduced the bill
last year, has said the platforms have no obligations under the act immediately
and that the government was open to consulting with them on the regulatory and
implementation process.
Facebook and Google said the proposals were unsustainable
for their businesses and for months signalled possibly ending news availability
in Canada unless the act was amended.
Canada's federal government has pushed back against
suggestions to make changes, and Prime Minister Justin Trudeau in June accused
the companies of using "bullying tactics."
"Big tech would rather spend money to change their
platforms to block Canadians from accessing good quality and local news instead
of paying their fair share to news organizations," Rodriguez said in a
statement on Thursday.
"This shows how deeply irresponsible and out of touch
they are, especially when they make billions of dollars off of Canadian
users."
Google's president of global affairs, Kent Walker, said in a
blog post that the law remains unworkable and that the company did not believe
regulatory process would be able to resolve "structural issues with the
legislation."
"We have now informed the government that when the law
takes effect, we unfortunately will have to remove links to Canadian news from
our Search, News and Discover products in Canada," Walker said.
The news outlets affected by Google's decision would be
based on the government's definition of "eligible news businesses"
when rules are finalised for implementation.
Google will also end its News Showcase programme in Canada,
under which the company has agreements with 150 news publications across the
country. Reuters has a contract with Google to produce News Showcase panels,
including in Canada.
The law forces online platforms to negotiate with news
publishers and pay for their content. A similar law passed in Australia in 2021
prompted threats from Google and Facebook to curtail their services. Both
struck deals with Australian media companies after the legislation was amended.
Google has argued Canada's law is broader than those in
Australia and Europe, saying it puts a price on news story links displayed in
search results and can apply to outlets that do not produce news.
The search engine giant had proposed that the displaying of
news content, rather than links, be a basis for payment and that only
businesses that produce news according to journalistic standards are eligible. ©
Reuters
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