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Canada’s telecom regulator, the CRTC, announced it will impose a fee on Google starting April 1 to recover enforcement costs for the Online News Act. The law mandates that large internet platforms compensate news publishers for content shared on their sites.
Google, a subsidiary of Alphabet (NASDAQ:GOOGL), criticized the move, arguing it unfairly places the full financial burden on a single company despite its ongoing support for Canada’s news industry. The CRTC clarified that the cost recovery rule applies only to platforms meeting the law’s criteria. The annual fee has no upper limit and may fluctuate.
The Online News Act, passed last year, is part of a global push to make tech giants pay for news content. Google agreed to pay C$100 million annually to Canadian publishers in a government-negotiated deal, ensuring news remains accessible via search. In contrast, Meta (NASDAQ:META) chose to block news from Facebook and Instagram in Canada to avoid payment obligations.
This decision comes amid heightened trade and regulatory tensions between Canada and the U.S., including disputes over border security and a proposed digital services tax targeting American tech firms. Google declined to comment beyond its initial response during public consultations.
With governments worldwide pushing for digital platforms to contribute to news funding, Canada’s approach reflects growing regulatory pressure on tech giants. As enforcement begins, Google and other platforms may face further scrutiny and potential regulatory costs.
