FILE PHOTO: The logo for Google LLC is seen at the Google Store Chelsea in Manhattan, New York City, U.S. REUTERS/Andrew Kelly
NEW YORK: Alphabet Inc says it will remove links to news from Canadian publishers on its Google search engine after Prime Minister Justin Trudeau’s government passed a law requiring digital platforms to pay local outlets for news content.
The Online News Act “creates uncertainty for our products and exposes us to uncapped financial liability simply for facilitating Canadians’ access to news from Canadian publishers,” Kent Walker, the California-based company’s president of global affairs, said in a statement.
Walker said the links will be removed when the law takes effect later this year.
The move followed Meta Platforms Inc’s announcement last week that it will end the availability of news on Facebook and Instagram for all users in Canada.
Both Alphabet and Meta had tested blocking news on their platforms for a small number of Canadian users in recent months.
Tech giants have argued that they would be unfairly forced to pay for content that has no economic benefits, but the government said the bill would help level the playing field, diverting some advertising revenue to the Canadian media sector that saw 450 outlets close between 2008 and 2021.
This isn’t the first time Alphabet has pulled news from its platform.
In 2014, the company shut down Google News in Spain after that country passed a law requiring news aggregators to pay publishers.
After a nearly eight-year hiatus, the service became available again last year following an updated copyright law allowing media outlets to negotiate with digital platforms.
Apart from blocking news in Canada, Alphabet said it will also end its negotiated agreements covering 150 news publications in the country.
In 2022, the platform linked to Canadian news publications more than 3.6 billion times, with referral traffic valued at C$250mil (US$189mil or RM882mil) annually, according to Alphabet.
“We hope that the government will be able to outline a viable path forward,” Walker said.
Otherwise, the legislation could “make it harder for Canadians to find news online, make it harder for journalists to reach their audiences, and reduce valuable free web traffic to Canadian publishers.”
Speaking to reporters last Wednesday, Trudeau said it’s “extremely disappointing to see that Facebook continues to refuse to accept its responsibility towards our democracies by refusing to pay their fair share.”
He added that talks between his government and Google were ongoing, but with Alphabet’s move it’s now unclear whether any compromise can be reached on the new regulations, which are still being drafted.
Heritage Minister Pablo Rodriguez’s office didn’t immediately reply to a request for comment.
News Media Canada, which represents some 500 outlets in the country from major newspapers to small independent players, scorned Alphabet’s move.
“Rather than demonstrating their extraordinary market power by withholding access to timely, accurate news for Canadians, this is a time for all stakeholders to act in good faith, as responsible corporate citizens, and engage actively in the regulatory process to ensure that regulation is balanced, predictable and fair,” Paul Deegan, the group’s chief executive officer, said by email. — Bloomberg
