The Canadian government has announced that it will impose a fee on Google to recover the costs of enforcing the Online News Act, which mandates that major internet platforms compensate news publishers for featuring their content. The decision was confirmed by the Canadian Radio-television and Telecommunications Commission (CRTC) on Wednesday, with the new charge set to take effect on April 1.
A Growing Tension Between Canada and the U.S.
This move comes amid increasing tensions between Canada and the United States over various trade and digital policy issues, including border security and a proposed digital services tax on American tech companies. The fee imposed on Google is part of a broader effort to ensure that large online platforms contribute fairly to the media industry, which has struggled with declining revenue as digital giants dominate the advertising market.
How the Fee Will Work
The CRTC stated that the majority of its operations are funded through fees charged to the companies it regulates. The new rule ensures that the cost of enforcing the Online News Act will be covered by the digital platforms subject to it. However, the commission clarified that the exact amount Google will pay could change annually and has no fixed upper limit.
Google’s Objections and Canada’s Rationale
Google has been vocal in its opposition to the new fee. During the public consultation process, the company argued that it was unfair to place the full financial burden of the regulation on a single entity. Google described the measure as “not a rational approach” and an “unfair regulatory burden,” emphasizing its ongoing support for Canada’s news ecosystem.
Canada, however, sees the fee as a necessary step in holding tech giants accountable for their impact on the media landscape. The Online News Act was passed last year as part of a global push to make tech companies compensate news publishers. Canada’s law follows similar efforts in Australia and the European Union, where governments have sought to balance the power of major digital platforms.
Google vs. Meta: Different Approaches to Compliance
Both Google and Meta, Facebook’s parent company, were identified as the only platforms large enough to fall under the Online News Act’s scope. While Google eventually reached an agreement with Canadian publishers to pay C$100 million annually in exchange for keeping news links in its search results, Meta took a different approach. Instead of agreeing to payments, Meta decided to block news content on Facebook and Instagram in Canada altogether.
What’s Next?
The CRTC has made it clear that due to the structure of the Online News Act, the costs of enforcement can only be recovered from the platforms to which the law applies. As a result, Google will have to comply with the new fee structure unless it decides to challenge it further.
Google has declined to comment beyond its official submission to the CRTC during the consultation period. With enforcement beginning soon, the tech giant may have to make further adjustments to its business model in Canada to accommodate the new financial obligations.
