Following the enactment of the Online News Act in Canada, which mandates tech companies to compensate for local news content, Google has joined other prominent Silicon Valley companies in blocking Canadian users from accessing local news on its platform.
The recently implemented law aims to provide support to the struggling Canadian news industry, which has witnessed numerous publications shutting down over the past decade. It requires digital giants to establish fair commercial agreements with Canadian news outlets regarding the news and information shared on their platforms. Failure to comply may result in binding arbitration.
Google expressed its view that the new law is “unworkable” and stated that the government has not provided any indication that the “structural issues with the legislation” would be addressed during its implementation.
In a blog post, Google expressed that the new measures would make it “harder for Canadians to find news online” and “for journalists to reach their audiences.” However, individuals in the country will still be able to directly access news from Canadian websites by entering the web address in their browser or using dedicated apps.
Google’s decision follows unsuccessful negotiations with the government in an attempt to reach an agreement. Meta, formerly known as Facebook, also announced last week that it would block Canadian news on its platforms, including Facebook and Instagram.
These actions by the tech giants, who hold significant influence in online advertising, come amid allegations of diverting revenue from traditional news organizations while utilizing their content without compensation.
In its statement, Google mentioned “We have informed the government that we have made the difficult decision that… we will be removing links to Canadian news from our Search, News, and Discover products and will no longer be able to operate Google News Showcase in Canada.”
Deputy Prime Minister Chrystia Freeland, herself a former journalist, emphasized that “the loss of revenues flowing out of newsrooms in Canada is not just a problem for the journalists who are affected, it’s a problem for the whole country. She highlighted “To have a strong culture, to have a healthy society, to have healthy politics, we need great, well-paid journalists.”
A report by Canada’s parliamentary budget watchdog in October 2022 estimated that the Online News Act would result in Canadian newspapers receiving approximately CAD 330 million annually from digital platforms.
Canada’s legislation follows in the footsteps of Australia’s New Media Bargaining Code, which marked a global precedent by compelling Google and Meta to remunerate news content featured on their platforms.
Furthermore, the Agence France-Presse (AFP) reached a five-year agreement with Google in late 2021 regarding neighboring rights, requiring the internet giant to compensate the news agency for the utilization of its content. Additionally, the AFP established two commercial agreements with the platform.
