In response to Canada’s newly enacted Bill C-18, also known as the Online News Act, Google has joined Meta in removing news content and services from its platforms. The Online News Act requires tech companies to negotiate compensation with publishers for linked material, a move aimed at addressing the decline in ad revenue for publications over the past two decades. Google has announced that it will pull links to Canadian news stories from its search, News, and Discover services in the country. Additionally, it will cease operating its News Showcase in Canada when C-18 takes effect in six months.
Cris Turner, Google’s government affairs VP, argues that C-18 is “unworkable legislation” and claims that it is unduly harsh. He points out that the European Union allows free use of links and short extracts, while even the Czech Republic’s stricter interpretation of the EU still permits headlines and links. In Australia, where a similar law requiring online services to pay for news is in place, Google has negotiated deals to keep its news features available and circumvent the law’s requirements. Turner asserts that the approach dictated by C-18 leads to “uncertainty” for product strategy and “uncapped” financial penalties.
Despite Google’s opposition to C-18, the company emphasizes its belief in the importance of a “vibrant journalism industry” and has proposed policy ideas to support it. These ideas include consultation with experts, investment in newsroom progress, and support for traditional news outlets as they transition to digital platforms. Google sees the approach mandated by C-18 as hindering the development of a viable strategy and imposing potentially significant financial penalties.
The move by Google follows Meta’s recent decision to remove access to all news content from Facebook and Instagram in Canada. Similar to Meta, Google is using the threat of blocking news content as a bargaining tool. Turner states that the company plans to “participate in the regulatory process” and hopes for a “viable path forward” through negotiations with the government. Google seeks at least a partial change in the legislation to address its concerns.
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However, there is no guarantee of a compromise between Google and the Canadian government. Bill C-18 was introduced by politicians in response to concerns about the steep decline in ad revenue for publications. Although Google and other tech companies have invested in newsroom projects, provided free tools, and highlighted news content to support publishers, legislators remain unconvinced that these efforts are sufficient.
The situation in Canada is not unique. Google previously faced a similar challenge in Australia and New Zealand, where it objected to legislation granting the government the power to decide who has to pay and how much publishers should be compensated. The tech giant’s decision to remove news content in those regions was also met with opposition. However, Google ultimately managed to negotiate deals that allowed its news features to remain available while avoiding the full impact of the legislation.
As the regulatory landscape continues to evolve, tech companies like Google and Meta are reevaluating their approaches to news content. They recognize the importance of supporting journalism and ensuring the sustainability of the industry. However, they argue that the current regulatory frameworks, such as the Online News Act in Canada, pose challenges and require careful consideration to strike a balance between the interests of publishers, tech companies, and consumers. Both Meta and Google are actively engaging in the regulatory process in the hope of finding common ground and developing solutions that benefit all stakeholders involved.
