This move comes as a response to a new law, the Online News Act (Bill C-18), which requires payments to local news publishers.
The Canadian government estimated that news businesses could potentially receive around C$330 million ($249 million) per year from the mandated deals under this legislation.
Facebook and Google have argued that the proposed legislation is unsustainable for their businesses.
Google informed the government that it will remove links to Canadian news from its Search, News, and Discover products within Canada once the law goes into effect.
Google will terminate its News Showcase program in Canada, which involves agreements with 150 news publications across the country.
The Online News Act mandates that online platforms negotiate with news publishers and compensate them for their content.
Google argues that Canada’s law is broader than those in Australia and Europe.