The Canadian news industry has supported some of Google's concerns about the new Online News Act, passed by the Canadian Senate on June 15, 2023. News Media Canada (NMC), a body representing Canada's top newspapers, including the Globe and Mail and the Toronto Star, has stated that Google has made a 'good faith articulation of legitimate concerns' that the Canadian government should address while finalising rules to implement the law.

The Online News Act aims to make large internet companies share advertising revenue with news publishers nationwide. The government is deciding on rules expected to be released by the December 19 deadline.

Google has expressed reservations about establishing links to news stories as the basis of payment. It has also been argued that the suggested rules fail to tackle issues such as potentially imposing limitless accountability on the company and placing constraints on its ability to bolster the news sector. NMC's CEO, Paul Deegan, concurred with Google's apprehensions, asserting that there should be a definite upper limit, rather than a minimum, regarding financial liability.

Why does it matter?

The Online News Act represents a significant shift in policy, as it seeks to regulate the relationship between large digital platforms and news publishers. It also can incur significant costs for Google and others. According to a report from Network 18, adhering to these regulations would result in an expenditure of 230 million Canadian dollars for Google and Meta. Conversely, Google's threat to remove news links has led to a call for dialogue and negotiation, with news publishers ready to sit down and work through the details of these issues before the regulations are concluded.