In response to the passage of Online News Act, known as bill C-18, in Canada, Google has announced that it will no longer include links to Canadian news outlets in its search results and other products. The bill requires Google, along with Meta, to pay news companies for linking to their content. Meta, the parent company of two of the most popular social media platforms, has also pledged to follow suit and block Canadians from sharing news on their platforms. In a statement, Meta explained that complying with bill C-18 means that content from news outlets, including publishers and broadcasters, will no longer be accessible to users in Canada.
The bill C-18 was recently enacted as part of the Canadian government’s efforts to regulate the digital world. The legislation aimed to generate approximately $329 million annually for Canadian newsrooms, according to the Parliamentary Budget Officer. However, with Google’s decision to block articles from Canadian news outlets, the anticipated revenue stream is now in jeopardy.
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The bill’s passage signifies a broader effort by the Canadian government to regulate the digital realm and curb the power of tech giants. The repercussions of Google’s decision extend beyond search results. Canadian media will also be removed from Google’s News and Discover products, potentially impacting publishers reliant on Google search for attracting readers and supporting their businesses. Some users have already noticed changes in their search results
In response to these actions, the Canadian Broadcasting Corporation (CBC) has urged Canadians to visit trusted news websites directly. Critics argue that tech giants should contribute more of their revenue to support struggling media organizations, while companies like Google claim that the new laws pose unworkable frameworks and potential financial liabilities.
The legislation in Canada draws inspiration from a similar law enacted in Australia in 2021, and California is considering a comparable plan. Meta previously engaged in a dispute with Australian news outlets over payment for content but reached agreements to use their content on their platforms.
Under the new Canadian law, tech giants are required to negotiate payments with media outlets for posting or linking to their content. If negotiations fail, binding arbitration is mandated to determine fair compensation. Canadian Prime Minister Justin Trudeau expressed disappointment in Google’s decision, emphasizing the need for fair contributions from internet giants to support local news.
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