Google said Canada’s decision exposes the company to “unlimited financial liability”.
Google (NASDAQ:GOOGL) is removing all Canada news links from its search due to a new file Online news law. The tech giant said it will block all Canadian news, meaning users will no longer find any country-related report on the search engine. The decision came in response to a new law requiring technology companies to pay media outlets for content.
Last week, Canada’s controversial C-18 legislation was passed by the Canadian Parliament despite Google referring to it as “impractical”. Meta (NASDAQ:META) has also criticized the bill on the grounds that it is unfair to force compensation on technology companies. Google and Meta are battling the government over a law that forces them to pay media outlets in Canada to distribute links to news stories. The Canadian government has made it clear that the legislation requires fair compensation for struggling news outlets. Officials also emphasized the need to “promote fairness in the Canadian digital news market”. Supporters of the bill wrote:
“Digital platforms and social media are now portals through which people can find, read, and share news. Because of this, advertising revenue has shifted away from local news and journalists to these gatekeepers, who profit from the sharing and distribution of Canadian news content.”
There is an expectation that the law could generate up to $329 million for the Canadian news industry. Although the Online News Act has already been passed in Canada, it will take months for it to take effect. When this happens, Google has already decided to remove links to “Canadian news from our search, news and discovery products and you will no longer be able to operate the Google News Gallery in Canada”.
Google will block all Canada news links
in News blogGoogle said Canada’s decision exposes the company to “unlimited financial liability”. She reiterated that this is not the right approach and could affect her products. According to the tech giant, it has contributed to the Canadian press via programs and partnerships and is ready to do more. Google disclosed that it linked to Canadian news publications more than 3.6 billion times last year without payment. According to the company, it has helped publishers generate revenue through ads and new subscriptions without expecting anything in return. Despite being willing to do more, the multinational technology company said it would not be able to do so “in a way that disrupts the way the web and search engines were designed to operate, and that creates unacceptable financial and product uncertainty.”
Canadian Minister Pablo Rodriguez was surprised by Google’s decision to remove all Canadian links from its platform. The politician said they still had a transfer with the tech company shortly before. Google also confirmed that it had discussed with the government as it requested clarification of the financial projections. Google seemed unhappy with the chat with Canadian officials, as it announced it would remove the links shortly after the meeting.
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Ibukun is a crypto/financial writer interested in passing on relevant information, using uncomplicated words to reach all types of audiences. Apart from writing, she loves watching movies, cooking, and exploring restaurants in the city of Lagos where she is staying.
