Google Rejects Trudeau’s Olive Branch, Threatens News Link Block Over New Law
Alphabet Inc.’s Google has moved closer to blocking Canadians from viewing news links on its search engine after it rejected government regulations meant to placate its concerns about an impending online content law.
The Latest Blow to Trudeau’s Government
This is the latest blow to Prime Minister Justin Trudeau’s government and its efforts to compel Google and Meta Platforms Inc. to negotiate payments with local publishers under the Online News Act, due to come into effect on Dec. 19. Google’s move comes about a month after Meta similarly dismissed the regulations and said that it will continue blocking users in Canada from seeing news on Facebook and Instagram to avoid running afoul of the law.
Google’s Rejection
According to a statement by Google Canada, the company has serious concerns that the core issues may not be solvable through regulation and that legislative changes may be necessary. "We continue to have serious concerns that the core issues ultimately may not be solvable through regulation and that legislative changes may be necessary," said Google spokesperson Shay Purdy in an email on Oct. 6.
The Government’s Offer
The details of the bill published on Sept. 1 said that both companies can avoid arbitration by agreeing to pay news outlets a minimum of four per cent of their annual revenue in Canada in return for carrying links to news articles. Under those terms, Google would be expected to pay about $172 million per year, according to the government’s estimates. The offer was an apparent olive branch to address concerns of uncapped financial liabilities.
Google’s Criticism
However, Google has criticized the regulations, saying that they create greater uncertainty by attempting to transform the mandatory bargaining model set out in the Act into more of a levy model. "The result of this exercise is a hybrid model that captures the worst of both worlds, imposing the obligations of a levy without providing any of its certainty," said Google Canada in a statement on Oct. 6.
Google’s Threat
According to the statement, Google has tested blocking news links for a small percentage of users in Canada earlier this year and may block all news links if the current regulations are implemented. "The timing problem remains, potentially putting Google in a position of having to suspend links to news content," according to the statement.
Implications
This move by Google could have significant implications for Canadians who rely on search engines for news and information. If Google does indeed block all news links, it would be a major blow to the government’s efforts to compel tech companies to pay publishers for their content.
Background
The Online News Act was introduced as part of the Canadian government’s efforts to regulate online media outlets and ensure that they pay fair compensation to local journalists and publishers. The bill has been met with opposition from tech giants like Google and Meta, who argue that it creates uncertainty and could lead to increased costs for consumers.
Impact on Canadians
The impact on Canadians could be significant if Google does indeed block all news links. Many Canadians rely on search engines like Google for their daily news and information, and a loss of access to news links could limit their ability to stay informed about current events.
Conclusion
Google’s rejection of the government’s regulations and its threat to block all news links is a major blow to the Canadian government’s efforts to regulate online media outlets. The implications for Canadians are significant, and it remains to be seen how this situation will play out in the coming weeks and months.
Recommendations
- Canadians should stay informed about the developments surrounding the Online News Act and Google’s response.
- The Canadian government should consider revising its regulations to address the concerns of tech giants like Google.
- Canadians should support local journalists and publishers by subscribing to their content or donating to independent media outlets.
Additional Resources
For more information on this story, please see:
- "Google rejects Trudeau’s olive branch, threatens news link block over new law" (Bloomberg.com)
- "Canada introduces Online News Act to regulate tech giants" (The Globe and Mail)
Note: The above article is a rewritten version of the original text with additional content added to provide more context and background information on the story.
