Google will remove news links in Canada in response to the Online News Act

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Google said on Thursday it would remove Canadian news content from its search, news and discover products after a new law intended to compensate media outlets goes into effect.

The move to pull news from the world’s most popular search engine could have a devastating impact on Canadian media, which often depends on third parties like Google to get content into the hands of readers.

The decision comes after the government’s controversial C-18 legislation was approved by Parliament last week. Thebill has been criticized by tech giants such as Meta and Google who say it is unfair to impose what amounts to a link tax.

Some smaller media outlets and pundits have criticized the regime because they say most of the financial benefits will go to a handful of big media players.

“We are disappointed it has come to this. We do not take this decision or its impact lightly and believe it is important that we be transparent with Canadian publishers and our users as soon as possible,” said Kent Walker, president of the global affairs on Google and Alphabet.

“The unprecedented decision to put a price on links (a so-called ‘link tax’) creates uncertainty for our products and exposes us to unlimited financial liability simply for facilitating Canadians’ access to news from Canadian publishers.”

The government and major media outlets, including the newspaper lobby group and broadcasters such as the CBC and CTV, have said that social media companies should compensate news outlets for the use of their content.

Just yesterday, Prime Minister Justin Trudeau said the government was confident Google would pass the legislation.

“I can tell the conversations with Google are ongoing. It’s important to find a way to ensure Canadians can continue to access content in all manners, but also to protect the rigorous independent journalism that plays a critical role in our democracies,” he said.

“We know that democracies only work with a strong independent and diverse media and we will continue to work for that.”

WATCH: Trudeau says he’s “disappointed” by Meta’s reaction to online news law

Trudeau says he is “disappointed” by Meta’s threat to cut off access to news on Facebook, Instagram Prime Minister Justin Trudeau says his government will continue to work with social media giants to “ensure Canadians can continue to function online in free and open ways”.

Meta has already said it will block Canadian news content on popular platforms like Facebook and Instagram.

Trudeau called Meta’s decision “hugely disappointing”.

“Facebook continues to refuse to accept its responsibility to our democracy by refusing to pay its fair share,” Trudeau said.

The bill was presented as a way to keep news organizations solvent after advertising moved en masse to digital platforms, virtually wiping out a major revenue stream for journalism.

The dominance of excessive advertising once enjoyed by traditional media is over. Google and Facebook have a combined 80% share of all online advertising revenue in Canada and rake in a staggering $9.7 billion annually, according to government data.

According to government data, more than 450 news organizations in Canada have closed since 2008, and at least a third of Canadian journalism jobs have disappeared in the same time period.

Print and digital news companies have struggled to make money from their content after losing important revenue streams, such as classified ads and subscriptions.

In an era of cutbacks, even some private and public broadcasters have failed to adequately monetize their airwaves to pay for local, regional and national radio and television newscasts.

After years of losing money, Bell Media-owned CTV recently announced deep cuts, essentially closing the company’s overseas offices and scaling back its presence in Ottawa and Washington, DC

In an effort to reverse the decline in revenue, the government’s new regulatory regime will require companies like Meta-owned Google and Facebook and other major online platforms that reproduce or facilitate access to news content to pay to post content or go through a binding arbitration process conducted by an arms length regulatory body, the Canadian Radio-Television and Telecommunications Commission (CRTC).

An outlet will be considered an eligible news business if it regularly employs two or more reporters in Canada, operates largely in Canada, and produces content that is edited and engineered in Canada.

Google and Meta have signaled that they would rather exit the news publishing business altogether than engage in this process.

In a separate statement, a Google Canada spokesperson said the government’s legislation “will make it harder for Canadians to find news online, make it harder for journalists to reach their audiences, and reduce valuable free web traffic to Canadian publishers.” .

But Google has signaled that it may be willing to change course if the government addresses some of its concerns.

“Hopefully the government will be able to map out a viable path forward,” said Google spokesman Shay Pardy.

CBC/Radio-Canada could benefit from this new federal program because it operates one of the largest news sites in the country and links to its content are regularly shared on other platforms.

“We all depend on an open internet. It would be a shame if digital platforms used their dominance to deny Canadians access to news and information. We encourage Canadians to go directly to the websites and apps they trust for their news,” said Leon Mar, a spokesperson for CBC/Radio Canada.

OpenMedia, an advocacy group that has attacked the bill in the past, said on Thursday that Google’s decision is “exactly what the heritage minister warned [Pablo] Rodríguez about.”

“Unfortunately, the way this bill was written made a news block inevitable,” said Matt Hatfield, the group’s director of campaigns.

“Instead of building a much-needed sustainable funding model that supports quality and diverse news, C-18’s failures will make it even more difficult for Canadians to access the news they need on the platforms they use.”

Michael Geist is a Canadian Research Chair in Internet Law and Electronic Commerce at the University of Ottawa and a fierce critic of the bill.

He said Rodriguez, the minister who steered this legislation through Parliament, “didn’t take the risks of flawed Bill C-18 seriously.”

Geist said the minister was “sharply responsible” for Google’s decision, which risks endangering an already fragile sector.

“The damage from this cannot be overstated: The news industry loses hundreds of millions, Canadians face degraded search results, and the importance of low-quality sources increases,” Geist tweeted.

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