OTTAWA: Canada on Friday spelled out how new regulations requiring digital giants to pay publishers for news stuff, will work in practice, including how much it could cost Google and Meta.
The new bill aims to back a struggling Canadian news industry as hundreds of publications closed in the last ten years. As per media reports, effectively the law targets Meta and Google — which take around 80 percent of all digital advertising revenues in Canada.
Google, Meta May Have to Pay $170 Million To Canada
The government in Canada estimated it could cost the two firms a combined US$170 million by requiring them to make just commercial agreements with Canadian organizations for the news that is shared on their platforms.
According to the draft published on Friday, the steps would apply to firms with international annual revenues in excess of Can$1 billion, operating a social media platform or search engine actively used by 20 million Canadians and that distributes news content.
In a statement, Meta reacted by terming the bill ” flawed” and promised to continue blocking access in Canada to news content on its Instagram and Facebook platforms.
Google said it will “carefully study the regulations to assess whether or not they address its key structural challenges.”
Canadian Minister for Heritage Pascale St-Onge stated that people in the country have come to depend on digital platforms for news content. She said that the tech platforms should act responsibly.
