Google appears steadfast: it might even limit search results

Google has recently confirmed that, in response to the newly proposed Canadian legislation, they will cease to display Canadian news on their platform, rather than comply with the new law's stipulation that they compensate news publishers. This action sees Google following in the footsteps of Facebook, which has also declared its intention to combat the upcoming legal mandate.

The new law in question, Bill C-18, known as the Online News Act, is set to be enacted by January 2024, and will necessitate that tech giants Google and Facebook pay Canadian news publishers for their content. In response to this, Google has stated that it will begin to eliminate links to Canadian news from its search results and other services in Canada once the law becomes effective. Facebook has issued a similar statement.

The proposed law aims to safeguard local news creators, who have seen a steady decline in revenue as Facebook and Google have increasingly dominated the online advertising market. It's anticipated that the enactment of this law could provide Canadian news enterprises with a potential income of up to $250 million annually.

Google appears steadfast: it might even limit search results

However, the law's implementation is not without its complexities. In its current state, the law does not immediately impose any obligations on Google or Facebook. The Canadian government has expressed its willingness to consult with these internet behemoths about the regulatory and practical challenges posed by the legislation. Despite this, both Google and Facebook continue to assert that the proposed law will have detrimental effects on their businesses, leading to their stated plans to exclude Canadian news content from their platforms. In response, the Canadian government has adamantly upheld its intention to enforce the law in full. Prime Minister Justin Trudeau has accused the companies of employing intimidating tactics in an attempt to have the law rescinded.

Notably, this legislation mirrors a law passed in Australia in 2021, which required online platforms to negotiate payment for content with news publishers. That law similarly elicited a backlash from Google and Facebook, but ultimately led to a negotiated compromise between the companies and the Australian government. The possibility remains that a similar outcome could be achieved in Canada.

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