Canada’s telecommunications regulator announced Wednesday it will levy a fee on Google to cover the costs of enforcing a landmark law requiring tech giants to compensate news publishers. The decision, effective April 1, intensifies a transnational debate over who should fund journalism in the digital age.
The Canadian Radio-television and Telecommunications Commission (CRTC) said the fee, with no annual cap, will recover expenses tied to administering the Online News Act , legislation passed in 2023 to address concerns that platforms like Google and Meta dominate online ad revenue, undermining news outlets’ financial viability.
While Google negotiated a C$100 million annual payment to publishers to keep news in search results, Meta opted to block news content on Facebook and Instagram in Canada entirely.
The CRTC defended the fee as standard practice, noting its operations are typically funded by regulated entities. Google, however, criticized the rule during consultations, calling it “irrational” to assign 100% of costs to a single company.
In its submission, Google argued the levy constitutes an “unfair regulatory burden” despite its existing agreements with publishers. The CRTC countered that the law’s structure limits cost recovery to platforms subject to the mandate.
Canada’s law aligns with a worldwide shift to hold tech firms accountable for news dissemination. Australia’s News Media Bargaining Code pioneered similar measures in 2021, while the EU’s Digital Markets Act imposes interoperability requirements on major platforms.
Experts cite declining ad revenue and the proliferation of disinformation as catalysts for such policies. “Without intervention, the ecosystem supporting credible journalism risks collapse,” said a 2024 UNESCO report on combating fake news.
The fee emerges amid strained Canada-U.S. relations over digital taxation and trade. Ottawa’s broader digital services tax, targeting revenue of large tech firms, has drawn U.S. criticism. Analysts warn the fee could exacerbate diplomatic friction but note Canada’s stance mirrors EU efforts to recalibrate power dynamics with Silicon Valley.
For news organizations, the law’s success hinges on whether funds meaningfully bolster original reporting. Critics, however, question its efficacy, citing Meta’s withdrawal and Google’s reluctance. As debates over media trust and tech accountability escalate, Canada’s experiment may foreshadow a new era of regulatory frameworks globally.
