Alphabet Inc.’s GOOG GOOGL Google and Meta Platforms Inc. META have decided to remove links to Canadian news sites — a step that has made significant ripples in the country.
What Happened: Google and Meta have made significant decisions following the Canadian Parliament’s passing of the Online News Act law that requires online platforms to pay news outlets for sharing their stories.
Google’s president of global affairs, Kent Walker, expressed his dissatisfaction with the law, stating that it is “unworkable” and could expose the company to extensive financial liability.
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As a result, Google plans to remove links to Canadian news from Google Search, Google News, and other products once the law goes into effect.
"We're disappointed it has come to this. We don't take this decision or its impacts lightly and believe it's important to be transparent with Canadian publishers and our users as early as possible," Waller said.
Last week, Meta also affirmed its commitment to block news content on Facebook and Instagram in Canada.
Why It's Important: This isn't the first time that Google and Meta have encountered such a scenario.
For instance, in 2021, Meta imposed a news blockage in Australia when the nation introduced a comparable law, resulting in widespread disruption. Nevertheless, both Meta and Google ultimately reached agreements with news publishers in the country.
Previously, Canadian Prime Minister Justin Trudeau slammed Google and Meta for resorting to “bullying tactics” against the country's push to ensure financial support for news publishers.
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