Google and Meta respond to Bill C-18 fallout in Canada

Google announced on Thursday its decision to remove Canadian news from its platforms and terminate existing agreements with local publishers due to the implementation of the Liberal government’s Online News Act. The legislation requires digital giants like Google to compensate media outlets for the content they share or repurpose. As a result, Google plans to eliminate news links from its search engine, Google News, and Google Discover exclusively for Canadian publishers and readers. However, Canadian users will still have access to news content from international outlets like BBC, New York Times, and Fox News.

Additionally, Google intends to discontinue its Google News Showcase in Canada, a product that licenses news from over 150 local publishers. The existing agreements will remain in effect until the change takes place later this year. Kent Walker, President of Global Affairs for Google and Alphabet, stated that once the law is implemented, it is unlikely that the agreements will continue as they are contingent on featuring Canadian news, which will no longer be available.

While Google did not provide a specific timeline for the changes, they will be implemented before the law comes into force by the end of the year. Walker wrote a letter to Canadian Heritage Minister Pablo Rodriguez to inform him of Google’s decision. Rodriguez has not yet responded to the matter. Google has initiated discussions with federal, provincial, and regional authorities to ensure they are aware of other Google tools that can aid in crisis response and other situations.

Meta, Facebook’s parent company, has also announced its plan to remove news in Canada from its Facebook and Instagram platforms prior to the law taking effect. Meta is currently conducting a test to block news for up to five percent of its Canadian users and is terminating existing agreements with local publishers, including a contract for a fellowship program supporting the hiring of emerging journalists at The Canadian Press.

The Online News Act aims to establish government oversight for digital giants, addressing their dominance in the online advertising market. The Canadian government perceives Meta and Google’s decision to remove news as a threat to Canadian democracy, particularly when the news industry is already facing financial challenges. The government has expressed its commitment to supporting newsrooms but has not provided specific details on how it will be done.

Google argues that the law is unworkable as it places a price on links, creating an unlimited financial liability that no business can accept. While Google has proposed alternative ways to support news, such as establishing a journalist fund, the company is seeking clarity on the costs and negotiation process. The regulatory process will likely clarify these details.

News Media Canada, an advocate for the news industry, believes there is a viable path forward and urges all stakeholders to engage in good-faith discussions during the regulatory process. Canadian Heritage Minister Rodriguez expressed hope for a positive resolution with both Meta and Google to prevent news removal.

In a related development, Meta’s termination of the contract with The Canadian Press, which funded reporting fellowship positions for emerging journalists, was linked to the Online News Act. Meta stated that the new law impacted its operations in Canada. The termination of the program is seen as detrimental to the industry, as it provided opportunities for young journalists and promoted diversity in Canadian newsrooms. Despite the program’s discontinuation, The Canadian Press will seek various revenue sources to sustain its journalism work, honoring existing contracts with Meta fellows.