Google has become the latest tech giant to restrict Canadian users from accessing local news content on its platforms over a new law that will require digital firms to compensate media outlets for content they share or otherwise repurpose.

The Online News Act, passed last week, aims to bolster the struggling Canadian news sector, which has witnessed numerous publications shuttering over the past decade.

Under the legislation, tech companies are required to establish equitable commercial agreements with Canadian news outlets for the news and information disseminated on their platforms or face binding arbitration.

What did Google say?

Google issued a statement expressing its view that the law is "unworkable" and stated that the government has not provided assurances that the "structural issues with the legislation" would be resolved during its implementation.

In a blog post, Google added that the new law will make it more challenging for Canadians to find news online and for journalists to reach their audiences. However, individuals in Canada will still retain the ability to access news from Canadian websites by directly typing the respective web addresses into a browser or through dedicated applications.

Google's decision to block Canadian news comes after unsuccessful discussions with the government aimed at reaching a resolution.

Meta, another tech giant, also announced last week that it would block Canadian news on Facebook and Instagram.

The two companies, which command a significant share of online advertising, have faced accusations of disrupting revenues of traditional news organizations while utilizing their content free of charge.

"We have informed the government that we have made the difficult decision... to remove links to Canadian news from our Search, News, and Discover products and will no longer be able to operate Google News Showcase in Canada," Google stated.

Millions for Canadian newspapers?

Canada's Deputy Prime Minister Chrystia Freeland, a former journalist, emphasized that the loss of revenues flowing out of Canadian newsrooms poses a problem not only for affected journalists but for the entire country.

She highlighted the need for well-compensated journalists to maintain a strong culture, a healthy society, and robust politics.

A parliamentary budget watchdog report from October 2022 estimated that the Online News Act would result in Canadian newspapers receiving approximately $249 million (€229 million) annually from digital platforms.

Canada's legislation builds on Australia's New Media Bargaining Code, the world's first, which compelled Google and Meta to pay for news content on their platforms.