Alphabet Inc GOOGL GOOG is unfurling tests centered around blocking news content for some Canadian users.
What Happened: The tests are in response to the Canadian government’s “Online News Act” (House of Common bill C-18), introduced by the government of Prime Minister Justin Trudeau, reported Reuters.
The bill reportedly requires Google and others, such as Meta Platforms Inc META, to make deals with news publishers for content.
“We're briefly testing potential product responses to Bill C-18 that impact a very small percentage of Canadian users. We run thousands of tests each year to assess any potential changes to Search,” said a Google spokesperson in an email to Reuters.
A spokesperson for Canada’s Heritage Minister, Pablo Rodriguez, decried the restriction and called for more transparency for the tech giants.
The spokesperson reportedly said it was disappointing that Google was following Meta’s playbook.
“Tech giants need to be more transparent and accountable to Canadians,” said the minister’s spokesperson.
Why It Matters: Google said that the tests were limited for a period and impacts a random sampling of less than 4% of users in Canada, reported Reuters.
The company said that the tests “limit the visibility of Canadian and international news to varying degrees,” according to the report.
In 2021, Facebook’s parent Meta blocked news in Australia after the country passed a similar law, which ended up causing chaos. Both Google and Meta have since then inked deals with the country’s news publishers.
Check out more of Benzinga’s Consumer Tech coverage by following this link.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.