Canada has recently released details about a new online news law that would require tech behemoths Meta and Google to pay at least 4% of their annual revenue to Canadian news outlets for carrying links to news articles. According to the draft regulations, Google would be required to pay around $127 million, and Meta would owe approximately $46 million annually to the news industry.
Meta, which has already blocked Canadians from viewing news content on Facebook and Instagram, called the law unworkable for its operations. A spokesperson for Meta stated, “The draft rules will not make any difference.” Rachel Curran, Head of Public Policy in Canada, was quoted by Bloomberg saying, “Since the legislation is based on the incorrect assumption that Meta unfairly benefits from news content shared on our platforms, today’s proposed regulations will not affect our business decision to end the availability of news in Canada.”
Google is also planning to ban news from its search results in Canada. Both companies claim the law is not applicable to their operations.
Government officials revealed that the draft regulations had not been shared with the companies earlier. Heritage Minister Pascale St-Onge said, “Canadians rely on digital platforms for their news and information, but these tech platforms must act responsibly and support the sharing of news that benefits them and Canadians alike.” The online news law is expected to come into effect in December.
The Canadian government’s move aims to support local news outlets, but it’s facing resistance from major tech companies. As the law is scheduled to be enacted in December, it will be interesting to see how this standoff between the tech giants and the Canadian government unfolds.
