Canada is learning (the hard way) that when tech giants make threats, you best believe ‘em.
What happened: Google announced it would stop showing Canadian news content in Canada when the Online News Act comes into effect later this year. That means no more Canadian news in the News tab and an end to publishing deals with over 150 outlets.
Catch-up: Last week, the government passed the hotly contested Online News Act, which forces major online platforms to strike deals with publishers that link to their news content.
- Google is now the second company with an impending news ban. Meta also said it would block Canadians from sharing, posting, and seeing news on its platforms.
Why it matters: This is pretty much the worst-case scenario for the Canadian government. Struggling news publishers who were promised a boost in revenue could actually face a drop as they see traffic decline, and Canadians could have a harder time staying informed.
- “[The government] has scored the ultimate own goal,” professor and researcher Michael Geist told The Globe and Mail, “taking millions away from the sector and leaving Canadians in a far worse position than if [it] had done nothing at all.”
What’s next: As the final regulations of the law are drafted, things could change, like what happened in Australia when it passed a similar act (and got a similar response) in 2021.
Yes, but: Both sides seem like they have nothing left to say.
Bottom line: “[Big Tech companies] are aware that the Australian example is emboldening different governments to try similar things,” Canadaland’s Jesse Brown told Slate. “And frankly, I think they’re making an example out of Canada.”—QH