Google and Facebook Face Off Against Canada's News Bargaining Law

Google and Facebook are facing off against Canada's new Online News Act, which would require them to pay news publishers for the content that they link to and display on their platforms. The law is similar to one that was passed in Australia in 2021, and it has been met with resistance from both Google and Facebook.

The two companies argue that they already do a lot to support the news industry, by driving traffic to news websites and generating advertising revenue. They also say that the law is unfair because it would force them to pay for content that they don't own or control.

The Canadian government has defended the law, saying that it is necessary to ensure that news publishers can continue to produce high-quality journalism. The government has also said that the law is fair because it would allow news publishers to negotiate their own payment rates with Google and Facebook.

The Online News Act is still in its early stages, and it is not yet clear how it will be implemented. However, it is clear that it is a contentious issue that is likely to be debated for some time to come.

Here are some of the specific issues that Google and Facebook have with the Canadian law:-

• The law would allow the government to intervene in negotiations between news publishers and tech platforms if they are unable to reach an agreement on payment terms. Google and Facebook argue that this is an overreach of government power.
• The law would require Google and Facebook to pay for news content, even if it is not original or exclusive. This could lead to higher costs for consumers, as Google and Facebook would pass on the cost of the payments to them.
• The law would only apply to large tech platforms, such as Google and Facebook. This could create a competitive disadvantage for smaller platforms, which would not be required to pay for news content.

It remains to be seen how the Canadian law will be implemented and whether it will be successful in its goal of supporting the news industry. However, it is clear that the law is a major challenge for Google and Facebook, and it is likely to be a source of controversy for some time to come.

In addition to Canada, several other countries are considering similar laws, including the United States, the United Kingdom, and New Zealand. It remains to be seen whether these laws will be passed, but they are a sign of the growing pressure on Google and Facebook to pay for news content.