New Delhi: Google has transferred a significant sum of Can$100 million (approximately US$69 million) to Canadian news organizations, marking a significant step in complying with the country’s Online News Act. This legislation aims to address the financial challenges faced by traditional news outlets, which have seen a decline in advertising revenue due to the dominance of tech giants like Google in the digital advertising space.
The payment was made to the Canadian Journalism Collective, a non-profit organization responsible for distributing the funds fairly among eligible media businesses. This move follows the passage of the Online News Act in June 2023, which requires tech platforms to compensate news publishers for the use of their content. While Meta initially blocked news content on its platforms in Canada to avoid compliance, Google chose to negotiate a deal.
Under the agreement, broadcasters will receive 30% of the payment, with the remaining portion distributed among news publishers. This financial support is expected to be a crucial lifeline for newsrooms, enabling them to produce more high-quality journalism and bolstering the Canadian media landscape.
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The Online News Act reflects a growing global trend, with countries like Australia and several European nations implementing similar legislation to ensure tech companies pay for the use of news content. Google has expressed its commitment to supporting Canadian journalism by indicating plans for another payment at the end of 2025.
The implementation of this deal is overseen by Canada’s broadcast regulator, which approved the funding in October 2024. In exchange for these payments, Google has been granted a five-year exemption from the Online News Act, allowing it to continue displaying Canadian news content on its platforms without facing immediate regulatory action.
