This issue goes well beyond left vs. right. Leftist fake news may not currently be as prevalent, but the number of anti-vaxxers and vehemently anti-science screeds against "chemicals" shows that there's more than enough fake news blame to go around.
You are right that it is rotting our democracy. Information has become disinformation. People are moving to a "gut" only method of deciding what information to believe.
I don't know if Google is the one to determine this by withdrawing funding from fake-news. I don't know if anyone trusts government enough anymore for them to take on the problem. How do you determine a legitimate journalist?