Alphabet (GOOGL), the parent of company of search engine Google, is blocking some news content in Canada as it prepares to respond to the federal government's online news legislation.
Known as Bill C-18, the Online News Act would require digital companies such as Alphabet and Meta Platforms (META), which owns Facebook, to compensate Canadian media outlets for republishing their content.
Alphabet has said that it is temporarily limiting access to news content for about 4% of Canadians as it assesses possible responses to the legislation should it be approved in Parliament.
The change applies to the Google search engine as well as Android-powered smartphones that carry Canadian news and sports information.
Alphabet said it plans to run the test for five weeks, and that the block includes content from both Canadian broadcast networks and newspapers.
Meta Platforms has also threatened to block news in Canada should the Online News Act come into force.
Alphabet executives said during an appearance before a House of Commons committee that the potential new law unfairly targets large companies and that it could result in the proliferation of “clickbait content” rather than legitimate forms of journalism.
Alphabet executives added that they would rather pay into a fund such as the Canada Media Fund that would pay news publishers indirectly for their content.
The Online News Act has been passed in Canada’s House of Commons and is now being studied in the Senate.
Alphabet’s stock is down 32% over the last 12 months and trading at $90.89 U.S. per share.
