Google said Thursday it will remove Canadian news from its platforms and end existing deals with local publishers because of the Liberal government’s Online News Act, which forces digital giants to pay media outlets for content they share or otherwise repurpose.
The tech giant plans to remove news links from its search engine, Google News and Google Discover for only Canadian publishers and readers.
Canadian users will still be able to search for news content from international outlets such as BBC, New York Times and Fox News.
The company said it will also end Google News Showcase in Canada, a product it uses to license news from over 150 local publishers. Those existing deals will stay in place until the change happens later this year.
“Once the law takes effect, we wouldn’t anticipate continuing the agreements,” said Kent Walker, president of global affairs for Google and its parent company Alphabet, in an interview Thursday.
“We won’t have a news product to be able to feature, (and) the agreements are premised on the ability to showcase Canadian news.”
Google did not say exactly when the changes will happen, but it will be before the law comes into force. The law passed last week and will come into effect by the end of the year.
Walker said he wrote a letter to Canadian Heritage Minister Pablo Rodriguez early Thursday morning to inform him and his team of the decision.
Rodriguez did not immediately respond to a request for comment.
Walker said Google has begun briefing federal, provincial and regional authorities “just to make sure they’re aware of all the Google tools at their disposal to get the word out as they need to for crisis response, (and) forecasting other circumstances.”
He said Google will continue to create resources for government agencies to get the word out during times of crisis.
“We want to stress this change won’t affect the SOS alerts we use to surface safety information during crisis situations, like the fires (in Canada) or floods or earthquakes,” Walker said.
Meta announced last week it will also be removing news in Canada from its Facebook and Instagram platforms before the law is in force.
It is already running a test to block news for up to five per cent of its Canadian users.
Meta is also ending existing deals with local publishers, including the contract for a fellowship program that supports the hiring of a limited number of emerging journalists at newswire service The Canadian Press.
The Online News Act requires both companies to enter into agreements with news publishers to pay them for news content that appears on their sites if it helps them generate money.
The act aims to create new government oversight for digital giants who dominate the online advertising market.
The Liberal government views Meta and Google’s dominance on the internet, and their decision to remove news, as a threat to Canadian democracy at a time when the news industry continues to face cuts due to declining ad revenue.
Since 2008, nearly 500 newsrooms have closed across the country, Rodriguez said.
Walker said the law is unworkable because it puts a price on links, resulting in an uncapped financial liability “that no business could accept.”
“I think we need clear financial expectations, and we need a clear and realistic path toward exemption that takes into account our commercial agreements and the other support we provide for news in Canada,” Walker said.
While the bill was being debated in Parliament, Google called for lawmakers to consider alternative ways to support news, such as creating a fund for journalists.
Google had also been seeking assurances about how much the changes could cost them, and how the bargaining process will unfold. Those details are likely to become clear after the bill’s regulatory process is complete.
News Media Canada, which advocates for the news industry, said this is a time for all stakeholders to “act in good faith” and engage in the regulatory process.
“We believe there is a viable path forward,” said Paul Deegan, the group’s president and CEO, in a statement.
Earlier this week, Rodriguez told The Canadian Press he is hopeful the government will come to a positive resolution with both companies to prevent them from removing news.
Rodriguez also said the government will continue to support newsrooms, though he did not say exactly how that will be done.
“The effort to find a solution feels genuine, but unfortunately we don’t have the assurances we need to create financial certainty or product certainty, but we do hope that changes,” Walker said.
“We hope the government can work through the details. It’s their bill, they know it best, so we’ll have to wait and see how the regulatory process unfolds, what the government comes forward with, and see if there’s a satisfactory outcome.”
META ENDS CONTRACT FOR JOURNALISM FELLOWSHIP
Amanda Stephenson, The Canadian Press
As the fallout from the federal government’s Online News Act continues, Facebook parent Meta is terminating a contract with The Canadian Press that saw the digital giant support the hiring of a limited number of emerging journalists at the national newswire service.
The newswire agency was informed Wednesday that Meta will end the contract, which has funded roughly 30 reporting fellowship positions for early-career journalists at CP since the program’s inception in 2020.
Canadian Press executive editor Gerry Arnold said that in its letter informing the media company of its decision, Meta clearly linked its termination of the program to Canada’s Online News Act, which became law last week.
“We were told the Act has an adverse impact on Meta’s position in Canada to operate some products,” Arnold said.
“It’s a business decision by Meta, in light of the changing regulatory environment.”
Meta declined to comment Wednesday, but the tech giant has been outspoken about its opposition to the new federal law, formerly known as Bill C-18.
The law requires tech companies such as Meta and Google to negotiate deals compensating media outlets for news content they share or otherwise repurpose on their platforms.
While the intent of the law is to help preserve Canadian journalism at a time when newsrooms are struggling to compete for online advertising dollars, the fallout has been swift.
On Thursday, Google said it would remove links to Canadian news stories from its platforms in retaliation, and Meta has threatened to do the same.
But Janice Neil, associate professor of journalism at Toronto Metropolitan University, said she was surprised by the Facebook parent’s ending of its partnership with The Canadian Press.
Neil said the fellowship program was important because it provided an on-ramp into the industry for young journalists at a time when reporting jobs are hard to come by.
CP also used the program to hire more BIPOC journalists and others from diverse backgrounds, a move designed to help ensure Canadian newsrooms better reflect the makeup of the society they serve, she added.
“So this (termination of the program) really hurts, in way that’s not going to be as visible to the public as removing online links to news stories,” Neil said.
“But I think it’s a real sucker-punch for the industry.”
CP’s existing contracts with Meta fellows will be honoured, Arnold said, adding the newswire agency will continue to pursue a variety of revenue sources to support its journalism work.
“We would have preferred to see the program continue, but I don’t regard this as a fatal blow,” he said.
“At the same time, I want to acknowledge what an amazing contribution the young people we were able to recruit to this program made to The Canadian Press news service. They changed the face of our newsroom.”
This report by The Canadian Press was first published June 29, 2023.