Google will block news in Canada because it doesn't want to pay publishers

Google has become the latest Silicon Valley giant to block Canadian users from seeing local news on its platform after Ottawa passed a bill requiring tech companies to pay for such content.

The Online News Act became law last week, aiming to support a struggling Canadian news sector that has seen hundreds of publications close in the last decade.

It requires digital giants to make fair commercial deals with Canadian outlets for the news and information that is shared on their platforms or face binding arbitration.

In a statement on Thursday, Google said the new law is "unworkable" and that the government has not given it a reason to believe "structural issues with the legislation" would be resolved during its implementation.

In a blog post, Google added that it will be "harder for Canadians to find news online" and "for journalists to reach their audiences."

People in the country will, however, still be able to access news from Canadian sites by typing their respective web address directly into a browser or through apps.

Google's announcement comes after the failure of last-ditch talks with the government aimed at bringing the company onboard.

Tech giant Meta announced last Thursday that it, too, would block Canadian news on Facebook and Instagram.

The two companies, who dominate online advertising, have been accused of draining cash away from traditional news organisations while using their content for free.

"We have informed the government that we have made the difficult decision that... we will be removing links to Canadian news from our Search, News, and Discover products and will no longer be able to operate Google News Showcase in Canada," Google said.

Heritage Minister Pablo Rodriguez, who introduced the bill last year, has said the platforms have no obligations under the act immediately and that the government was open to consulting with them on the regulatory and implementation process.

Meta and Google said the proposals were unsustainable for their businesses and for months signalled possibly ending news availability in Canada unless the act was amended.

Canada's federal government has pushed back against suggestions to make changes, and Prime Minister Justin Trudeau in June accused the companies of using "bullying tactics."

'Not just a problem for journalists'

Deputy Prime Minister Chrystia Freeland, a former journalist, said "the loss of revenues flowing out of newsrooms in Canada is not just a problem for the journalists who are affected, it's a problem for the whole country."

"To have a strong culture, to have a healthy society, to have healthy politics, we need great, well-paid journalists," she said.

An October 2022 report by Canada's parliamentary budget watchdog estimated the Online News Act would see Canadian newspapers receive about $250 million per year from digital platforms.

Canada's measure builds on Australia's New Media Bargaining Code, a world first, that made Google and Meta pay for news content on their platforms.

Google has argued Canada's law is broader than those in Australia and Europe, saying it puts a price on news story links displayed in search results and can apply to outlets that do not produce news.

The search engine giant had proposed that the displaying of news content, rather than links, be a basis for payment and that only businesses that produce news according to journalistic standards are eligible.