Google has joined other Silicon Valley giants in blocking Canadian users from accessing local news on its platform after the Canadian government passed the Online News Act. The legislation requires tech companies to pay for news content shared on their platforms or face binding arbitration. Google considers the law “unworkable” and believes that the structural issues with the legislation will not be resolved during its implementation.

While Canadian users can still access news from Canadian sites directly through browsers or apps, Google’s decision makes it harder for Canadians to find news online and for journalists to reach their audiences. The move follows failed negotiations between Google and the Canadian government. Meta, formerly known as Facebook, also announced its decision to block Canadian news on its platforms. The Online News Act is part of a larger effort to support the struggling Canadian news sector, which has witnessed numerous publications closing in recent years.

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Google has become the latest Silicon Valley giant to block Canadian users from accessing local news on its platform in response to the Online News Act recently passed by the Canadian government. The legislation aims to provide support to the struggling Canadian news sector, which has experienced numerous closures of publications over the past decade.

Under the Online News Act, digital giants are required to establish fair commercial agreements with Canadian news outlets for the news and information shared on their platforms. Failure to comply would result in binding arbitration. However, Google has deemed the new law “unworkable” and expressed skepticism that the structural issues with the legislation will be resolved during its implementation.

In an official statement, Google highlighted the potential impact of its decision, stating that it will make it “harder for Canadians to find news online” and for journalists to reach their audiences. Nevertheless, individuals in Canada can still access news from Canadian sites by directly entering the respective web addresses into a browser or through apps.

Google’s announcement comes after unsuccessful negotiations with the Canadian government, aimed at reaching an agreement regarding the legislation. Meta, formerly known as Facebook, also announced its decision to block Canadian news on its platforms.

Both companies, which dominate the online advertising market, have faced accusations of benefiting from traditional news organizations’ content without adequately compensating them, leading to financial challenges for the news sector.

Deputy Prime Minister Chrystia Freeland, herself a former journalist, emphasized the broader implications of the revenue loss experienced by Canadian newsrooms, stating that it affects the entire country. She highlighted the importance of well-paid journalists for maintaining a strong culture, healthy society, and robust politics.

A report by Canada’s parliamentary budget watchdog in October 2022 estimated that the Online News Act would result in Canadian newspapers receiving approximately Can$330 million per year from digital platforms.

The Online News Act in Canada builds upon Australia’s New Media Bargaining Code, which compelled Google and Meta to pay for news content on their platforms. In 2021, Google reached a five-year agreement with the Agency France-Presse (AFP) on neighboring rights, requiring the internet giant to pay for the news agency’s content.