Google and Canada Strike Deal to Avoid News Ban Under Online News Act
In a recent development, Google has reached a resolution with Canada to prevent a news blackout in response to the impending Online News Act, set to come into effect on December 19. The law mandates tech giants like Google and Meta (owner of Facebook and Instagram) to negotiate payment agreements with news outlets.
Earlier, Google had threatened to remove links to news content in Canada in protest against the legislation. Meta has already implemented news restrictions on its platforms due to the same law.
After months of negotiations between Google and Canada, an agreement has been reached. As per the deal announced on Wednesday, Google will pay an annual fee of C$100 million (£58 million, $74 million), indexed to inflation, to news outlets.
Canadian Heritage Minister Pascale St-Onge disclosed in a statement that the funds would be allocated “for a wide range of news businesses across the country, including independent news businesses and those from Indigenous and official-language minority communities.” The payment will be managed by a “single collective,” distributing funds to eligible news agencies based on the number of full-time equivalent journalists employed.
St-Onge emphasized the importance of a sustainable news ecosystem and expressed concerns about newsrooms facing closure and layoffs, noting that “the health of the Canadian news industry has never been more at risk.”
Google released a statement expressing its satisfaction with the Canadian government’s commitment to addressing core issues related to the bill. The statement mentioned ongoing collaboration with the government through the exemption process while continuing to direct valuable traffic to Canadian publishers.
The Online News Act had faced opposition from tech companies upon its passage during the summer, while media groups viewed it as a positive step toward fair market practices. Google had criticized the bill as “unworkable,” stating that the decision to put a price on links disrupts the functioning of the web and search engines.
Meta had initiated restrictions on Canadian news content on Facebook and Instagram starting from August 1. Users attempting to access news on these platforms encountered messages indicating that the content couldn’t be viewed in Canada.
The law’s passage could have meant news organizations earning up to C$329 million ($248 million, £196 million) annually from digital platforms. However, the finalized amount of C$100 million resulted from extensive negotiations between the involved parties.
This situation mirrors events in Australia in 2021 when Facebook briefly blocked users from sharing or viewing news due to a similar law. Subsequent amendments led to the lifting of the blackout, and both Google and Meta engaged in negotiations with Australian media companies.
