In a significant move, Google has agreed to pay $100 million CAD ($69 million) to Canadian news outlets, marking a major step in the battle over fair compensation for online news content. This payment is part of the Online News Act, which compels tech giants like Google and Meta to compensate Canadian media for using their news stories. Google’s deal follows increasing pressure on digital platforms, which have siphoned advertising revenue from traditional news sources.
Meta, however, chose to sidestep the issue by blocking Canadian news content on its platforms, including Facebook and Instagram, in protest against the payments. Google’s deal, on the other hand, promises a more collaborative approach, with 30% of the $100 million allocated to broadcasters and the remaining funds shared among publishers.
This influx of funds comes as a welcome relief to Canadian newsrooms, many of which have struggled with shrinking budgets. Paul Deegan, President of News Media Canada, praised the deal, noting that the money would help newsrooms produce more in-depth, quality coverage, especially around democratic issues. The Canadian Journalism Collective (CJC) will manage the distribution of funds, ensuring each news outlet gets a fair share based on the number of journalists they employ.
For Google, the agreement ensures continued access to high-quality, fact-checked news content, reinforcing its platform’s credibility. In exchange, the company is granted a five-year exemption from the Online News Act, a win that bolsters its presence in Canada while supporting local journalism.
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