Google has announced that it will block Canadian news in the country in response to the recently passed Online News Act, which requires tech giants like Google and Meta’s Facebook to negotiate payment deals with news providers. This move follows Meta’s announcement that it will also restrict news content for its Canadian users. The law is set to take effect in six months.
The Online News Act is similar to legislation passed in Australia two years ago, which was later amended after Meta briefly blocked users from sharing or viewing news on its platforms. The blackout ended when amendments were made, and both Google and Meta have since negotiated more than 30 deals with Australian media companies.
Google had previously criticized the Canadian law as “unworkable” and proposed amendments. The company, along with Meta, has engaged in talks with the Canadian government regarding the legislation. However, the government argues that the law will provide fair compensation to struggling news outlets and enhance fairness in the Canadian digital news market.
Pablo Rodriguez, the minister responsible for the file, expressed surprise at Google’s decision, stating that they had been in conversations as recently as that morning. The Canadian parliament’s independent budget watchdog estimates that news organizations could receive up to C$329 million ($248 million; £196 million) per year from digital platforms.
While the bill was championed by many media associations and outlets, they may now face a threat to their businesses as Google is a significant source of web traffic to Canadian news outlets. For example, Google accounts for 30% of traffic to the Globe and Mail and 40% to Le Devoir.
Google did not specify the duration of the ban on local news links or whether Canadian users would be shown links to stories about Canada from non-domestic publishers. The company stated in a blog post that they have informed the government about their decision and believe it’s important to be transparent with Canadian publishers and users.
Google Canada’s policy team stated that the government had not given them a reason to believe that the regulatory process can address the structural issues with the legislation. However, they also expressed their intention to participate in the regulatory process and continue being transparent with Canadians and publishers.
News Media Canada, which represents numerous news organizations across the country and supported the law, still believes there is a “viable path forward.” The organization called for all stakeholders to act in good faith and engage actively in the regulatory process to ensure balanced, predictable, and fair regulation.
The response from News Media Canada, which represents various news organizations across Canada, emphasizes the need for all stakeholders to act responsibly and engage in the regulatory process. They argue that instead of withholding access to timely and accurate news for Canadians, it is a time for collaboration and good faith. News Media Canada believes that a balanced, predictable, and fair regulation can be achieved through active participation and cooperation.
The impact of Google’s decision to block Canadian news links is significant for the media landscape in the country. Many news outlets heavily rely on Google for web traffic, with percentages as high as 40% for certain publications. This move by Google and Meta could potentially jeopardize the businesses of these media associations and outlets, creating an uncertain future for the Canadian news industry.
The Canadian government, on the other hand, maintains its position that the legislation is necessary to ensure fair compensation for struggling news outlets and to enhance fairness in the digital news market. The government believes that the Online News Act will bring much-needed support to the news industry and address the challenges it faces in the digital age.
With the law set to take effect in six months, the stage is set for further discussions and negotiations between tech giants, news providers, and the government. It remains to be seen how these parties will navigate the regulatory process and find a resolution that strikes a balance between the interests of news organizations and the tech giants’ concerns.
As the situation unfolds, Canadian users may face limitations in accessing local news through Google’s Search, News, and Discover products. The exact duration of the ban on Canadian news links is unknown, and it remains unclear whether non-Canadian publishers will be featured prominently in search results concerning Canada-related news.
The blocking of news links by Google raises questions about the influence and power of tech giants in the dissemination of news and information. It highlights the ongoing tension between platforms and traditional media outlets, as well as the need to find sustainable models that support journalism in the digital era.
The impact of Google’s decision and the subsequent developments surrounding the Online News Act will undoubtedly continue to shape the future of news consumption and the relationship between technology platforms and media organizations in Canada.