Google and Meta Threaten Service Limitations in Canada Over Proposed News Legislation

Google and Meta have informed Canadian legislators that they would restrict access to news articles in Canada if the proposed legislation, compelling internet companies to pay news publishers, is enacted. The legislation in question requires platforms like Google’s parent company Alphabet and Meta Platforms (formerly Facebook) to negotiate commercial agreements and remunerate Canadian news publishers for their content. This aligns with a global trend seeking to make tech companies financially contribute to news outlets.

During testimony before a Senate committee, Richard Gingras, Google’s vice president of news, stated that if the bill passes, Google might be compelled to remove links to news articles from Canadian search results due to the potential “uncapped financial liability” associated with compensating publishers for linking to their sites. Similarly, Rachel Curran, Meta’s head of public policy in Canada, indicated that Meta would cease providing news content in Canada if the bill is enacted in its current form.

The Canadian proposal bears resemblance to Australia’s groundbreaking law in 2021, which prompted similar threats from Google and Facebook. Ultimately, both companies reached agreements with Australian media entities after amendments were introduced to the legislation.

In response to the proposed Canadian legislation, Google had previously tested blocking access to news for some Canadian users, a move criticized by Prime Minister Justin Trudeau as a “terrible mistake.” Gingras highlighted that in the previous year alone, Google had linked to Canadian news publishers over 3.6 billion times, contributing to their revenue through advertisements and new subscriptions.

Rachel Curran emphasized that Facebook feeds sent more than 1.9 billion clicks to Canadian publishers in the 12 months ending April 2022, estimated to be worth $230 million in free marketing. Curran argued that a framework requiring compensation for links or voluntarily shared news content on their platforms is impractical.

The bill, introduced in April 2022 by Heritage Minister Pablo Rodriguez, is part of a broader legislative trend seeking fair compensation from digital media platforms when they benefit from news content. A Heritage Ministry spokesperson stated that the objective is for tech giants like Facebook and Google to negotiate equitable deals with news outlets for the use of their content.

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