Canada is on the brink of a clash with tech giants Google and Meta, as both companies vow to block local news content from their platforms in response to a new law passed by the country. The legislation, known as the Online News Act, aims to compel tech giants to pay news providers for their content.
Pierre-Elliott Levasseur, president of La Presse, a prominent French-language publication in Quebec, expresses disappointment after years of failed negotiations with tech giants over payment agreements for news content. The new law was expected to bring much-needed revenue to news organizations, but instead, Google and Meta have announced plans to block news links rather than comply with the legislation.
While Google has previously negotiated payment agreements with news providers in other countries, it now deems Canada’s law “unworkable” and intends to remove Canadian news links from its platforms once the act takes effect. Meta, which had opposed the proposal from the outset, also plans to block news sites for Canadian users in the coming months.
Prime Minister Justin Trudeau had dismissed threats from tech firms before the law’s passage but now faces the reality of a potential news blackout. Media organizations, like La Presse, emphasize that they are not seeking handouts but fair commercial agreements, accusing tech giants of monopolistic behavior.
The dispute in Canada reflects a broader global trend, with other countries considering similar measures to ensure tech giants compensate news providers for their content. While the amounts discussed are small compared to tech giants’ revenues, they could provide vital support for journalism, seen as a cornerstone of democracy.
Observers note similarities with Australia’s approach, which led to negotiations and agreements between tech firms and publishers. However, some caution that the situation in Canada may differ, with Google and Meta showing resistance and indicating potential shifts away from news content.
The standoff between Canada and tech giants underscores the challenges facing news organizations reliant on platforms for traffic and revenue. With negotiations ongoing and the regulatory process likely to extend for months, newsrooms brace for uncertainty and potential disruptions to their operations.