Canada's broadcast regulator will slap a levy on Google starting April 1 to help finance enforcement costs, a move that telecom and internet-law experts warn will risks exacerbating heightened trade tensions between the Trump administration and Ottawa.
The Canadian Radio-television and Telecommunications Commission said Wednesday that Google, a unit of Alphabet, would be charged a fee to recover regulatory costs related to Canada's online-news law. That legislation compels digital platforms like Google and Meta Platforms -- owner of Facebook and Instagram -- to compensate media outlets for news links posted on their platforms. In response, Meta blocked Canadian news links from its platforms.
In a submission to the regulator, Google said it should be exempt because it reached a voluntary agreement with domestic media owners to make annual contributions. Because of this deal, the regulator would not have to oversee mandatory bargaining between Google and the news businesses. Google also said "it is not a rational approach to ask any one company to bear 100% of the costs of a regulation imposed on them."
The regulator, however, is pressing ahead with the levy -- at a time when President Trump has singled out Canada and other countries for unfair treatment of U.S. companies. As a result, Trump has pledged to introduce reciprocal tariffs to change other countries' behavior. Among the measures the White House will target is Canada's application of a 3% digital services tax.
Besides reciprocal tariffs, Canada faces a possible 25% U.S. tariff on nonenergy imports, and a 10% duty on U.S.-bound energy products. Those hefty tariffs could kick next week, on March 4, conditional on efforts by Ottawa to fortify border security and deter fentanyl trafficking.
"Why did CRTC choose to release it today when, presumably, government officials are doing everything they can to remove irritants?," said Mark Goldberg, who runs his own telecom consultancy in suburban Toronto. "This isn't going to ease cross-border tensions."
A spokesman for the regulator didn't reply to a request for comment regarding how the fee might affect U.S.-Canada trade relations.
Michael Geist, a University of Ottawa professor with an expertise in online law, said officials had designed online-news regulations with an eye toward big digital platforms paying regulatory costs. That was done prior to Trump winning a second term, and Geist said the President's policy thrust on trade makes the regulatory fee a risky venture.
Canada "wants U.S. companies to pay for Canadian news and then also pay for the system of figuring out how to do it. The fact that only one company is subject to the law makes this a particularly bad look," said Geist, referring to Meta's absence.
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