Google just launched tests to block access to news content for Canadian users to comply with Canada's Online News Bill. Bill C-18 would require platforms social media platforms, including Google, to negotiate with news publishers and pay for their content.

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The Google logo is seen on a phone in this photo illustration in Washington, DC, on July 10, 2019.

Complying with Online News Bill

In compliance with Canada's Online News Bill, Google rolled out tests to block online news content for some users in Canada. According to a report from TechCrunch, this would only impact 4% of Canadian users and will limit the visibility of both Canadian and international news, affecting all types of news content. 

"We've been fully transparent about our concern that C-18 is overly broad and, if unchanged, could impact products Canadians use and rely on every day. We remain committed to supporting a sustainable future for news in Canada and offering solutions that fix Bill C-18," a spokesperson from Google stated.  

House of Commons Bill C-18 would require platforms to negotiate deals that will pay news publishers for their content. This was introduced by the Liberal government of Justin Trudeau last April and laid out rules to force platforms to pay publishers for their content. 

Canadian Heritage Minister Pablo Rodriguez stated that it would provide fair compensation to news publishers who are currently in crisis. This was modeled after similar legislation in Australia. He then shared his disappointment with Google in a tweet saying that Canadians will not be intimated by these tests.

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Google's Response

However, the company claimed that they run thousands of tests each year in an effort to assess any potential changes to Search and its other services. 

Last year, Google Canada Vice President and Country Managing Director Sabrina Germeemia claimed that the bill could alter the access of citizens to the internet. "Requiring payment for links risks limiting Canadians' access to the information they depend on," she added.

Canada's News Media Industry

Gizmodo reported that this legislation could end up costing Google millions. A price estimate report was released by Canada's Office of the Parliamentary Budget Officer and it estimated that Google and Facebook would pay around $242.99 to news publishers per year. 

In this way, these funds would cover around 30% of publishers' overall editorial costs. Rodriguez added that Canadian lawmakers are committed to pressuring the tech giants to provide transparency and accountability. 

As per Reuters, the news media industry of Canada has asked the government for more regulation towards tech companies in an effort for the industry to recoup financial losses it suffered in the years that Facebook and Google have been gaining greater market share of advertising. 

More than 450 news outlets in Canada have already closed due to low earnings. This includes 64 closures in just the span of two years. 

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