Google will have to pay a levy to use Canadian news content in their search engine. The ruling comes amid rising tensions between Canada and the U.S. Meta announced it was blocking news from its Canadian platforms in June 2023. Canada’s broadcast regulator has charged Google a fee to enforce the Online News Act, which requires digital platforms to compensate domestic news publishers for using their content. The controversial move follows warnings from U.S. President Donald Trump that retaliatory tariffs would be imposed on the country over digital service taxes.
Canada's News Levies
On Wednesday, Feb. 27, the Canadian Radio-television and Telecommunications Commission said Alphabet’s Google would be charged a fee to recover the costs of Canada’s online news law.
The Online News Act, passed in June 2023, was designed to level the playing field between tech giants and traditional media outlets, many of which have seen declining ad revenues due to the dominance of platforms like Google and Meta.
Under the law, major digital platforms are required to negotiate commercial agreements with Canadian news publishers or face regulatory intervention.
Only Google and Meta meet the threshold of companies big enough to be charged, and both have heavily pushed back on the legislation.
In June 2023, Facebook and Instagram owner Meta announced that it was blocking news from its platforms for Canadian users to escape impending charges.
Canada Hits Google With Extra Levy
After months of discussions with the Canadian government to keep domestic media publications in its search engine, the tech giant agreed to pay an annual C$100 million.
However, despite the agreement, the CRTC has ruled that Google will be imposed with an extra levy from April 1.
The CRTC stated that under Canada’s Online News Act, only digital platforms covered by the law can be charged recovery costs.
During public consultations, Google claimed it was "not a rational approach" to impose the total cost on one company.
Google argued the rule was "an unfair additional regulatory burden on a company that has continued to support the news ecosystem in this country."
US-Canada Tensions Rise Over News Fees
The recent regulatory actions by Canada have intensified tensions with the U.S.
While Canada insists that its Online News Act is necessary to support domestic journalism, U.S. officials have viewed policies like these as a direct attack on America's economic interests.
On Friday, Feb. 22, a White House official said Trump ordered his administration to consider actions “to combat the digital service taxes (DSTs), fines, practices, and policies that foreign governments levy on American companies."
"President Trump will not allow foreign governments to appropriate America's tax base for their own benefit," the official said.
Trump previously said he would impose tariffs on goods from Canada over their digital service taxes.
"What they're doing to us in other countries is terrible with digital," Trump told reporters.
The growing divide between Canada and the U.S. could also have wider economic implications, especially as Washington considers imposing new trade barriers in response.
Similar tensions are rising between the U.S. and the EU, where nations like France and the U.K. have also implemented digital service taxes.
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