Google, Meta threaten to withdraw news access if Online News Act becomes law

Google and Meta's executives told Canadian lawmakers on Wednesday that the tech giants would take back access to news articles in Canada if the legislation that compels internet companies to pay money to the news publishers gets a green light.

The proposed legislation, which is part of a broader global trend to make tech firms pay for news, would force platforms like Facebook parent Meta Platforms Inc and Google parent Alphabet Inc to negotiate commercial deals and pay Canadian news publishers for their content.

Google's Vice President of News, Richard Gingras, said in testimony to a Senate committee that if this bill is passed, the company may be coerced to withdraw links to news articles found in Canadian search results. He further cited an "uncapped financial liability" if it had to pay publishers for linking to their sites.

Rachel Curran, head of public policy for Meta in Canada, said that if the bill is passed, Meta would also put an end to the availability of news content in the country.

The bill, introduced in April 2022 by Heritage Minister Pablo Rodriguez, is the latest legislation aiming to make digital media platforms pay for linking news content.

"All we're asking the tech giants like Facebook and Google to do is negotiate fair deals with news outlets when they profit from their work," Heritage Ministry spokesperson Laura Scaffidi said.

'Google carrying out tests blocking news content for some users in Canada a terrible mistake': Trudeau

Google, earlier this year, tested blocking some Canadian users' access to news as a potential response to the legislation.

Prime Minister Justin Trudeau called this move a 'terrible mistake'. He said the blocking of news in Canada was an issue "bothering" him.

"It really surprises me that Google has decided that they'd rather prevent Canadians from accessing news than actually paying journalists for the work they do," he said.

"I think that's a terrible mistake and I know Canadians expect journalists to be well paid for the work they do.”

Australia's ground-breaking law made Facebook and Google pay for news

Canada's proposal is similar to a trailblazing law passed by Australia in the year 2021 after which Google and Facebook had threatened to withdraw their services but eventually, struck a deal with Australian media companies after amendments to the legislation were offered.

As per a government report the law has largely worked.

The Treasury Department report said that since the News Media Bargaining Code took effect, the tech firms had inked more than 30 deals with media outlets compensating them for the content which generated clicks and advertising dollars.

"At least some of these agreements have enabled news businesses to, in particular, employ additional journalists and make other valuable investments to assist their operations," said the report.

"While views on the success or otherwise of the Code will invariably differ, we consider it is reasonable to conclude that the Code has been a success to date."

"The review shows the Code has been successful in balancing bargaining power between news media and digital platforms," said Assistant Treasurer Stephen Jones.

"Digital platforms must continue to negotiate in good faith with news businesses to ensure they are fairly remunerated for the news content they create."

(With inputs from agencies)

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