CRTC imposes fee on Google to cover cost of enforcing Online News Act
Canada’s telecommunications regulator, the Canadian Radio-television and Telecommunications Commission (CRTC), announced on Wednesday that it will be implementing a fee on Google to cover the costs associated with enforcing a law that mandates large internet platforms to pay for news content on their websites. This decision comes amidst growing tensions between Canada and the United States over trade issues, border security concerns, and the implementation of a digital services tax on U.S. technology companies.
The CRTC stated that the majority of its operations are funded through fees charged to the companies it regulates, and the cost recovery rule for the Online News Act will go into effect starting April 1st. The fee may vary from year to year and does not have a set upper limit. This move by the CRTC follows a period of public consultations, during which Google had opposed the implementation of the levy, arguing that it was not a fair approach to place the entire burden on one entity.
The Online News Act, passed by Canada last year, is part of a global trend aimed at holding internet giants accountable for paying news organizations for the content they display. The law was enacted to address concerns within the media industry that tech companies were dominating the online advertising market to the detriment of traditional news outlets.
Only two companies, Google and Facebook-parent Meta, met the criteria of being large enough to fall under the law’s requirements for compensating news organizations. After negotiations with the Canadian government, Google agreed to an annual payment of $100 million to publishers in order to continue featuring news stories in its search results. On the other hand, Meta chose to block news content from its Facebook and Instagram platforms in Canada to avoid making payments.
Google, in its response to the CRTC consultation, expressed dissatisfaction with the rule, characterizing it as an unfair regulatory burden on a company that has consistently supported the news ecosystem in Canada. The CRTC clarified that the cost recovery can only be imposed on digital platforms covered by the Online News Act.
When approached for comment, Google declined to provide any additional statements beyond what was previously submitted during the CRTC consultation process. This development underscores the ongoing challenges and negotiations between tech giants and regulatory authorities regarding the monetization of news content in the digital landscape.
