Google announced its decision to remove links to Canadian news from its search, news and discovery products in response to Canada’s recently enacted Bill C-18.
Unfortunately, we have made the difficult decision that when Bill C-18 comes into effect, we will remove Canadian news links from our search, news and discovery products. pic.twitter.com/wMdoignNlC
— Google Canada (@googlecanada) June 29, 2023
In this article, we’ll take a deeper look at the Online News Act and how Bill C-18 has caused major technology platforms like Google and Meta to implement changes to search and social platforms that will affect Canadians’ access to news online
What is the Online News Act
Bill C-18known as the Online News Act, is a law introduced in Canada to regulate digital intermediaries such as search engines and social media platforms that disseminate news content, addressing the relationship between these digital platforms and news companies.
At its core, the Act seeks to establish a framework for news companies in Canada to negotiate compensation with digital platforms that distribute their content. This responds to perceived imbalances in bargaining power between these entities.
Eligible news companies to begin this negotiation process must meet specific criteria, including operating in Canada and employing at least two journalists.
If the negotiations are unproductive, the Law provides for an arbitration process of the final offer. This involves an independent panel reviewing the final bids from both parties and making a binding decision, taking into account the value it brings to both the digital platform and the news business.
The Act is designed to align with the Canadian Charter of Rights and Freedoms. It aims to be consistent with freedom of expression and journalistic independence.
Answer from Big Tech
In response to Bill C-18, Google and Meta have taken the important step of removing news content from their platforms in Canada.
With the Act’s framework requiring negotiations for compensation and the potential for binding arbitration decisions, these tech giants may be concerned about the unpredictability and financial implications of such commitments.
Their decision to remove news content could indicate how they weigh the cost-benefit ratio of complying with the new regulatory environment versus the value they get from distributing news content in the Canadian market.
It also highlights the challenges and complexities of finding a middle ground that satisfies the interests of both digital platforms and news companies within regulatory frameworks.
Google’s official statement on removing news links in search
In a recent blog entryKent Walker, President of Global Affairs at Google and Alphabet, said:
The Government has given us no reason to believe that the regulatory process can solve structural problems with the legislation. As a result, we have informed the government that we have made the difficult decision that when the law comes into force, we will remove 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 cited concerns about the law’s requirement to pay to display news links, which it refers to as a “link tax.”
According to the recent update, Google saw this aspect of the law as leading to product uncertainty and exposing the company to unlimited financial liability.
In addition, Google noted that the Canadian government had not provided assurances that the regulatory process could rectify what the company considers structural issues within the legislation.
Despite its stated commitment to Canadian journalism through programs and partnerships, including the Google News Showcase, Google believes that Bill C-18 in its current form is not viable. So Google removed news links, a process it had been testing since early 2023.
The company disclosed its efforts to provide feedback, recommend amendments and approve an alternative model involving a separate fund for journalism.
However, Google claimed the suggestions were not taken into account, raising concerns about the law’s impact on news access and journalists’ reach in Canada.
The company aspires to maintain transparency with Canadians and publishers, but expresses apprehension about the consequences of Bill C-18 should the government not address its concerns in the future.
Meta will not negotiate with Canada on Bill C-18
In an interview with CBC News, Rachel Curran, head of public policy at Meta Canada, discussed Meta’s response to the Online News Act.
Meta also posted one update with its decision to end the availability of news content on Facebook and Instagram to users in Canada.
The company conducted product testing to prepare for this move, affecting a small portion of Canadian users. Meta emphasized that while news content will be unavailable, other services and products, such as connecting with friends and family, business tools and community support features, will operate as normal.
In addition, Meta stated that it would continue its efforts to combat misinformation through its global fact-checking network.
According to Meta, the changes would affect Canadian and international media. While these outlets would still have access to their accounts and pages and may post links and news content, some content will not be visible to users in Canada.
Nick Chegg, Meta’s President of Global Affairs, posted a statement on the effect that these changes would have on the media.
We estimate that Facebook Feed sent registered news publishers in Canada more than 1.9 billion clicks in the 12 months to April 2022. That’s free marketing that we estimate is worth more than $230 million. Publishers choose to share their content because it drives traffic to their websites. It helps them sell more subscriptions, grow their audience, and show their ads to more people than they would have otherwise.
Meta criticized the Online News Act, describing it as fundamentally flawed for overlooking the dynamics of its platforms and user preferences.
The company felt that the legislation did not consider the value of Meta’s platforms to news publishers.
The future of online news in Canada
The enactment of Canada’s Online News Act, Bill C-18, marks a critical point in the relationship between digital platforms and news companies.
The law addresses imbalances in bargaining power and compensates the media for their content. However, Google and Meta’s responses indicate a reluctance by the tech giants to adapt to the new regulatory framework, leading to their removal from Canadian news content.
This development raises essential questions about the future of news dissemination through digital platforms in Canada and the evolving dynamics of regulation, technology and journalism.
The effectiveness and consequences of Bill C-18 will be closely watched in Canada and others facing similar issues.
Featured Image: JHVEPhoto/Shutterstock
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