Canada’s telecommunications regulator announced on Wednesday that it will impose a levy on Google to cover the costs of enforcing a law requiring major internet platforms to pay for news content.
The Canadian Radio-television and Telecommunications Commission (CRTC) stated that the majority of its funding comes from fees charged to regulated companies, and the cost recovery rule under the Online News Act will take effect on April 1. The fee, which has no upper limit, may vary annually.
The decision follows public consultations in which Google opposed the measure, arguing it was unfair to place the entire cost burden on a single company.
Part of a global movement to make tech giants pay for news, Canada’s law, passed last year, aims to address concerns that digital platforms are monopolizing the online advertising market at the expense of news organizations. Only Google and Facebook-parent Meta met the criteria requiring payment to news publishers.
After months of negotiations, Google agreed to pay $100 million annually to publishers to keep news in search results. Meta, however, opted to block news on Facebook and Instagram in Canada to avoid payments.
In its submission to the CRTC, Google criticized the rule as an “unfair additional regulatory burden” despite its ongoing support for the news industry. The CRTC clarified that the recovery costs could only be imposed on digital platforms covered by the law.
Source: Swifteradio.com
