Canada regulator to impose fee on Google for online news law’s operating costs
The Canadian Radio-television and Telecommunications Commission (CRTC) has announced it will impose a fee on Google to cover the operating costs of enforcing a law that mandates payments for news content. This decision follows public consultations and is part of a broader effort to ensure that internet giants pay for the news they feature on their platforms.
- The fee will be used to recover the costs of enforcing the Online News Act, a law passed to ensure that tech companies compensate news organizations for their content.
- Google has already agreed to an annual payment deal, agreeing to pay C$100 million annually to news publishers to keep news stories in search results.
- In contrast, Meta, the parent company of Facebook, has chosen to block news content on its platforms in Canada rather than pay for news.
Tension Between Canada and U.S.
This development comes at a time when there is growing tension between Canada and the United States over issues such as trade, border security, and a digital services tax targeting U.S. technology firms.
- The fee imposition is part of a broader context of efforts by Canada to regulate major tech companies, especially in light of increasing concerns around how these companies dominate online advertising at the expense of traditional media outlets.
CRTC’s Funding Structure and the Fee
The CRTC clarified that the vast majority of its operations are funded through fees charged to the companies it regulates. This cost recovery rule for the Online News Act will go into effect starting April 1.
- The fee amount may fluctuate each year, and there is no upper limit set.
- Google expressed concerns during public consultations, arguing that it was unfair to impose all of the costs on a single company, calling it “not a rational approach.”
Background of the Online News Act
The Online News Act was passed in Canada last year to address concerns from the media industry that tech companies were pushing news businesses out of the online advertising market.
- Only major companies like Google (Alphabet) and Meta were subject to the law, due to their dominant market presence.
- While Google agreed to the C$100 million deal to ensure news appears in search results, Meta chose to block news content on its platforms to avoid making payments.
Google’s Position
In its submission to the CRTC, Google argued that the cost recovery fee was an unfair additional regulatory burden, pointing out the company’s ongoing support for the news ecosystem in Canada.
- The CRTC has stated that the cost recovery will only apply to digital platforms subject to the Online News Act.
- Google declined to comment further beyond its response submitted during the consultation process.
This fee represents a significant step in Canada’s efforts to ensure that digital platforms fairly compensate news organizations for the content they share, with Google being a key player in this evolving regulatory landscape.
