The Blubber

Google, $GOOGL, has rejected Justin Trudeau’s news proposal for Canadian website, and is threatening to block all news links in Canada.

In an email on October 6, Google spokesperson Shay Purdy expressed ongoing serious concerns about the feasibility of resolving core issues through regulation, suggesting that legislative changes might be necessary.

The bill, revealed on September 1, outlined a provision stating that both companies could sidestep arbitration by committing to pay news outlets a minimum of four percent of their annual revenue in Canada. In exchange, they would be allowed to carry links to news articles. According to government estimates, under these conditions, Google would be required to pay approximately $172 million annually. This provision seemed to be a conciliatory gesture aimed at addressing worries about unlimited financial liabilities.

In response, Google Canada, in a statement on October 6, criticized the regulations, stating that while they aim to "provide clarity about the application of the act," they paradoxically introduce more uncertainty. The company argued that the regulations transform the mandatory bargaining model outlined in the Act into more of a levy model. Google characterized this hybrid model as capturing the disadvantages of both approaches, imposing the obligations of a levy without offering any of its certainty. Moreover, Google claimed that the model would compel the company to shoulder all the responsibilities and costs associated with negotiating agreements and disbursing funds, eliminating any flexibility in actual arrangements.