Google shared today that it won’t remove links to Canadian news websites. This is because the company has reached an agreement with the Canadian government about the Online News Act (Bill C-18). The Act aims to make big web platforms pay news sites for using their content.
Kent Walker, the president of global affairs for Google and Alphabet, released a statement. He expressed satisfaction with the Canadian government’s commitment for addressing their concerns about Bill C-18. This rule was designed to make large web platforms pay news outlets for using their content. The specific terms of the agreement still remains behind the curtains. However, Walker mentioned that the government has addressed Google’s worries about creating “uncapped financial liability” for linking to articles. According to reports, the government plans to pay millions of dollars to publishers as part of the deal.
Google will Continue to Send Traffic to Publishers in Canada 
As a result of this agreement, Google will continue sending valuable traffic to Canadian publishers while working with the government through an exemption process based on upcoming regulations. Initially, the plan was to exclude these links from Google Search, News, and Discover.
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During negotiations, a streamlined exemption process was established for companies that meet a “clear commitment threshold.” Reports suggest that this threshold involves an annual payout of around $100 million to local news companies, which is less than the $172 million initially sought by federal officials. The final regulatory language of Bill C-18 will allow Google to negotiate with a single group representing media organizations, reducing the need to work with numerous individual outlets.
Prime Minister Justin Trudeau, quoted by CBC, emphasized that Google has agreed to properly support journalists, including those in local journalism. The negotiations marked a shift in Google’s stance after months of holding strong and demonstrating a commitment to local journalism.
The New Act in Canada Targets Large Tech Companies like Google and Meta 
The Online News Act, also known as the “link tax,” targets major tech companies like Google and Meta (formerly Facebook). Scheduled to take effect in December, the law seeks to transfer money from large tech companies to news organizations. While both Google and Meta opposed the rule, Meta took a tougher stance, removing news from Facebook and Instagram in Canada. Google, however, engaged in last-ditch attempts to negotiate.
It’s worth noting that both companies reached agreements with Australian news outlets in 2021 in response to a similar law there.
