New Canadian Law Requires Google and Meta to Pay Publishers for News Content, Could Cost Them $230 Million
– The Canadian government has outlined a new law that mandates digital giants like Google and Meta to pay publishers for news content.
– The bill aims to support the struggling Canadian news sector, which has experienced a loss of advertising dollars and numerous closures of publications over the past decade.
The Canadian government has provided details on a new law that will require digital giants such as Google and Meta to compensate publishers for news content. This move comes in an effort to support the struggling Canadian news sector, which has suffered from declining advertising revenue and the closure of many publications in recent years. The government estimates that this law could cost Google and Meta a combined $230 million, as they will be required to enter into fair commercial agreements with Canadian outlets for the news shared on their platforms or face binding arbitration.
The law specifically targets Google and Meta, which control approximately 80% of all online advertising revenues in Canada. It applies to companies with global annual revenues exceeding $1 billion that operate a search engine or social media platform actively used by at least 20 million Canadians and distribute news content. Meta, formerly Facebook, has already responded by blocking access to news articles on its Facebook and Instagram platforms in Canada since August 1, calling the bill “fundamentally flawed.” Google has also expressed opposition to the Online News Act but stated that it will carefully study the proposed regulations to assess whether they address its major structural challenges.
Canadian Heritage Minister Pascale St-Onge emphasized the importance of digital platforms acting responsibly and supporting news sharing, given Canadians’ reliance on these platforms for news and information. The government’s goal is for tech giants like Google and Meta to contribute their fair share towards supporting the Canadian news sector.