Google to remove access to Canadian news in Canada over opposition to Bill C-18

On June 1, Facebook restricted access to news on its platform for 1.1 million Canadians — a move considered by Rodriguez as 'pure intimidation tactics.' He pledged to consult Canadians on Bill C-18, so they could 'express themselves on the matter.'

  • Rebel News
  • June 29, 2023
  • News Analysis
Google to remove access to Canadian news in Canada over opposition to Bill C-18
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Google is following Meta's precedent and will soon ban access to Canadian news content in the country. Both companies refused to comply with Ottawa's plan to force tech giants to compensate news publishers for 'repurposing' their content online.

On Thursday, Google announced it would remove Canadian news links from Google News and Google Discover. However, users in the country will still be able to access non-Canadian content from publishers abroad.

The company informed Parliament of their decision, though it did not say precisely when it would remove access to the news. It will happen before the law comes into force. 

Bill C-18, the Online News Act, passed the Senate last week, with the Commons passing a motion to support most of the Senate amendments. It will go into effect by the end of the year. 

"As promised, we are accepting amendments that ensure tech giants pay their fair share for the local, regional and national news content that they benefit from having on their platforms, and we are declining the amendments that undermine the bill's objectives," said Heritage Minister Pablo Rodriguez.

On June 1, Facebook restricted access to news on its platform for 1.1 million Canadians — a move considered by Rodriguez as "pure intimidation tactics." He pledged to consult Canadians on Bill C-18, so they could "express themselves on the matter."

On June 22, Meta, the parent company of Facebook and Instagram, announced it would no longer permit the sharing and accessing of news copy on its platforms. This will also take effect before Parliament legislates the bill.

In February, Google blocked 3.3% of Canadian users from viewing news links for five weeks. It impacted more than 1.1 million IP addresses.

The company contends the test did not prevent Canadians from seeing news from outlets of their choice, adding the news comprises less than 2% of Google searches.

"There [are many] ways they can see news, but there were [fewer] appearances of news on our services," testified Kent Walker, Google's president of global affairs and chief legal officer, at a Canadian Heritage committee hearing.

Walker said Google, and its parent company, Alphabet, expressed his disappointment with Canada over Bill C-18, which made their relationship "unworkable."

In a blog post by Google, Walker said the legislation puts a 'price on links' that puts an uncapped financial liability on tech giants "simply for facilitating Canadians' access to news from Canadian publishers."

"We don't take this decision or its impacts lightly and believe it's important to be transparent with Canadian publishers and our users as early as possible," he wrote.

The Online News Act mandates that Google and Meta enter revenue-sharing agreements with news publishers. News Media Canada, which advocates for the domestic news industry, urged all stakeholders to "act in good faith" and engage in the regulatory process.

"We believe there is a viable path forward," said Paul Deegan, the group's president and CEO, in a statement.

At one point, Google even called for lawmakers to consider alternative ways to support news, such as creating a journalist fund.

However, despite the company participating in the regulatory process, Prime Minister Justin Trudeau clarified 'no compromise' is in the cards — with proposed amendments from the tech giants falling on deaf ears.

"The fact that these internet giants would rather cut off Canadians' access to local news than pay their fair share is a real problem, and now they're resorting to bullying tactics to try and get their way," he told reporters on June 7. "It's not going to work."

While most outlets have praised the bill over its commitment to "enhance fairness" in the industry and bolster their dwindling revenues, not everyone is thrilled about their prospects.

"Everything about this bill is a disaster," said Jen Gerson of Calgary, co-founder of the online newsletter The Line. She called government meddling in the media a "poisonous thing" for news media integrity.

Jeff Elgie, CEO of Village Media, testified to senators that his business would cease if Meta and Google stopped linking news stories from his publication. He said that giving Bill C-18 royal assent presents "a much worse outcome" than not having tech giants surrender a portion of advertising revenues.

Once the regulatory process is complete, Google and Meta must pay 35% of news expenditures for hundreds of media outlets, including the state broadcaster CBC, Bell, and Postmedia.

However, some prominent publishers told a Senate committee they would stand to lose millions of dollars should Meta, and now Google, block their content.

Canadian taxpayers annually subsidize media at $595 million — in addition to the $1.2 billion comprising 70% of the state broadcaster's budget. Since 2019, Parliament has financed outlets deemed "qualified" by the Canada Revenue Agency worth up to 25% of the annual payroll or $13,750 per newsroom employee. 

As of 2008, nearly 500 newsrooms in Canada have closed, according to Rodriguez. The media bailout program is set to expire on March 31, 2024.

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