A federal bill that will require Google and Meta to pay media outlets for news content that they share or otherwise repurpose on their platforms is set to become law.

The Senate has passed the bill in a final vote and it is now awaiting royal assent amid a standoff between the Liberal government and Silicon Valley tech giants.

Ottawa, which says the law creates a level playing field between online advertising giants and the shrinking news industry, is now waiting to see if Meta or Google will react by removing journalism from their platforms in Canada.

Meta has said it plans to comply with the bill by ending news availability on Facebook and Instagram for its Canadian users, while Google has hinted that removing news links from its popular search engine is a possibility.

Meta is undergoing a test that blocks news for up to five per cent of its Canadian users, and Google ran a similar test earlier this year.

The Online News Act requires both companies to enter into agreements with news publishers to pay them for news content that appears on their sites if it helps the tech giants generate money.