Canada is a sovereign country. It can't really accept such a behavior from a corporation. I know a lot about C-18, but it is law now. Google will have to comply or the government will likely use it's force to make them.
Google is complying by removing news. The government is just throwing a tantrum because they didn’t understand the realistic consequences of their law.
How in the world will the government use force to make them stay in the news business in Canada? Do you realize how absurd that is and draconian and just terrible?