In a significant development, Google has agreed to pay $74 million annually to Canada’s news industry under a newly enacted Canadian law. The agreement follows Canada’s legislation requiring tech companies to compensate publishers for their content. The deal, announced by the Canadian government, averts the threat of Google blocking searches for Canadian news.
Canadian Prime Minister Justin Trudeau expressed satisfaction with Google’s commitment to support journalists, contrasting it with Meta’s stance. The latter had already been blocking Canadian news on Facebook and Instagram.
Pascale St-Onge, Canada’s Minister of Canadian Heritage, stated that the agreement demonstrates the effectiveness and equity of the legislation. She added that Canada reserves the right to revisit regulations if better deals are struck elsewhere globally.
The Online News Act, passed in June, mandates tech giants to pay publishers for using their content online. Meta responded by blocking news content in Canada on its platforms, and Google had previously signaled a similar intention.
The agreement requires Google to contribute $100 million Canadian dollars annually, indexed to inflation, to support various news businesses across the country. Kent Walker, President of Global Affairs at Google and Alphabet, expressed gratitude, emphasizing that Google would continue directing valuable traffic to Canadian publishers.
In light of newsrooms facing challenges and Meta’s departure from news content, Minister St-Onge called Meta’s move “irresponsible.” She urged Facebook to explain its decision and criticized its shift towards disinformation instead of supporting the news system.
This development unfolds as countries worldwide grapple with similar challenges in their media landscapes.
