Proactive Investors - Google (NASDAQ:GOOGL) is joining its tech peer Meta Platforms in deciding to no longer display news links in Canada due to the country's new Online News Act, the company announced Thursday.
The Act mandates digital giants to compensate media outlets for the content they share or repurpose online, requiring tech companies to pay news outlets for the use of their journalism content.
The company has informed the Liberal government of its decision, following a similar move by Meta Platforms to remove news from its platforms, including Facebook (NASDAQ:META) and Instagram, before the law is implemented.
According to the search engine giant, when the Online News Act, formerly known as Bill C-18, takes effect by the end of this year, its search engine will no longer carry news links. What’s more, news links will be removed from Google News, a personalized aggregator, and Google Discover, a mobile-phone feature that helps users find online content.
Google also confirmed that it will terminate Google News Showcase in Canada, a product through which it licenses news from more than 150 local publishers.
What is the Online News Act?
The Online News Act is a proposed legislation in Canada that aims to address the role of digital platforms in the country's news ecosystem. It recognizes the significant impact of these platforms on how Canadians access news and their importance in supporting the production of trusted news and information.
Key provisions of the act include fair revenue sharing between digital platforms and news outlets, which the government hopes will establish a more equitable distribution of financial resources.
News outlets are provided with the ability to engage in collective bargaining, allowing them to negotiate fair terms and conditions with digital platforms.
The act also promotes the establishment of voluntary commercial agreements between digital platforms and news outlets, encouraging cooperation without excessive government intervention, and mandatory arbitration in cases where commercial agreements cannot be reached.
The legislation aims to achieve several outcomes, including creating a flexible regulatory framework that fosters fair business relationships between digital platforms and news outlets. The Canadian government also hopes that the Act will ensure the sustainability of the Canadian news ecosystem, support independent news businesses, indigenous and official language minority communities, and promote innovative business models.
The legislation recently received royal assent.