Google has paid CAN100 million (approximately USD69 million) to Canadian media outlets in a landmark agreement under the Online News Act, the tech giant announced on Friday.
The deal comes amid challenges faced by Canadian news organizations, which have seen a decline in ad revenue due to competition from major tech platforms like Google and Meta. Under the legislation, both companies were required to compensate Canadian news outlets for content used on their platforms.
While Meta opted out of the arrangement, blocking Canadian news content on its platforms, including Facebook and Instagram, Google agreed to the terms. The Canadian Journalism Collective (CJC), a non-profit entity, will distribute the funds to news organizations.
Thirty percent of the $100 million will be allocated to broadcasters, while the remaining amount will go to news publishers. According to News Media Canada President Paul Deegan, this funding will strengthen newsrooms by providing resources to produce high-quality journalism.
“This financial support will enable Canadian newsrooms to deliver in-depth, fact-based reporting on democratic institutions,” Deegan said.
The funding model allocates $13,798 per journalist for larger publishers and $17,000 per full-time journalist for smaller, digital, and print outlets, as reported by the Canadian Broadcasting Corporation (CBC).
Deegan emphasized that the agreement benefits both Canadian journalism and Google, which gains access to credible, fact-checked content produced by professional journalists.
In return for its payment, Google has secured a five-year exemption from the Online News Act, allowing it to maintain access to Canadian news content without additional financial obligations during that period.
This development marks a critical step in the Canadian government’s efforts to ensure that tech giants pay their fair share for using local news content. By securing this deal, Google has set a precedent for potential collaborations between technology companies and the news industry worldwide.
The CJC’s role in distributing the funds ensures a structured and equitable allocation, providing much-needed financial relief to struggling news organizations across Canada.
