Google to implement search result restrictions for Canadian news outlets

Google informed the Canadian government that it will prevent articles from Canadian news outlets from appearing in search results and other products within the country. This decision follows the passing of a new bill that requires Google to pay a fee to news companies.

The recently passed bill, known as C-18, had the potential to generate $329 million in revenue annually for Canadian newsrooms, according to estimates from Canada’s Parliamentary Budget Officer. However, with Google’s blockade in effect, this revenue stream is unlikely to materialize. The bill mandates that companies like Meta and Google compensate media outlets for linking to news content through search or feeds.

This move by Google not only affects search results but also removes Canadian media from Google’s News and Discover products. This could have significant implications for publishers who rely on Google search to attract readers and support their businesses. It seems that these changes have already started to impact some users.

The Canadian Broadcasting Corporation, one of the country’s major news organizations, expressed its intention to encourage Canadians to directly visit trusted news websites for their information. Newsrooms in Canada and worldwide have experienced a decline in recent years, with 216 Canadian newsrooms shutting down between 2008 and 2018, as reported by researchers.

Pablo Rodriguez, M.P for Honoré-Mercier, criticized big tech companies on Twitter, stating that they would rather invest in modifying their platforms to block news from Canadians than pay a small percentage of their advertising revenue, which amounts to billions of dollars. Google’s Search revenue for the second quarter of 2023 was reported at $40.69 billion.

In a blog post, Google’s global affairs president, Kent Walker, described the framework of the new law as “unworkable” and warned of the company’s exposure to unlimited financial liability for providing Canadians access to news from Canadian publishers.

Meta has already announced its decision to block Canadian news outlets from appearing on Facebook or Instagram following the passage of the bill. Similar actions were taken by Meta in Australia, leading to significant controversy. Eventually, Meta reached an agreement with the country and restored access to news.

Canadian Prime Minister Justin Trudeau expressed his concern over the internet giants’ behavior, stating that they would rather restrict Canadians’ access to local news than pay their fair share. He emphasized that their bullying tactics would not succeed. Trudeau made these comments in response to the ongoing situation.

Walker acknowledged disappointment with the situation, stating that the company does not take this decision or its consequences lightly. He emphasized the importance of being transparent with Canadian publishers and users as early as possible regarding these changes.