Google Pays CAD 100 Million to Canadian News Outlets in Landmark Content Deal

AFP | Canada

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Google announced on Friday that it has paid CAD 100 million to Canadian news organizations for the use of their content on its platform, as part of an agreement with the Canadian government aimed at mitigating the impact of declining advertising revenue.

The Canadian government introduced the Online News Act in 2023, following in the footsteps of countries like Australia and several European nations, to compel tech platforms to compensate news publishers facing financial difficulties.

Google and Meta, which together account for roughly 80% of Canada's advertising revenue, had faced criticism for diverting funds away from traditional news outlets while using their content without compensation.

The CAD 100 million (approximately USD 69 million) was allocated to the Canadian Journalism Collective, a non-profit established to manage the distribution of the funds, according to a Google spokesperson.

The company, based in California, also indicated to AFP that it plans to extend the arrangement with another payment set for the end of 2025.

Paul Deegan, president of News Media Canada, a group representing major media outlets, hailed the deal as "far superior" to similar agreements in other regions. Canadian news organizations are expected to receive up to CAD 20,000 per journalist, a move that Deegan believes will provide significant support to newsrooms in producing high-quality coverage of Canadian democratic institutions. He added that Google stands to gain immensely from the reliable and well-verified content generated by Canadian journalists.

The Online News Act is part of Canada's efforts to support local news, which has struggled with a loss of advertising revenue and the closure of numerous publications over the past decade.

Meanwhile, Meta's platforms, Facebook and Instagram, opted to block news content in Canada to avoid paying news organizations. Google had also warned of a similar move but decided to proceed with the funding agreement, which was approved by Canada's broadcasting regulator in October.

Under the terms of the agreement, 30% of the Google funds will go to broadcasters, with the remaining amount being shared among news publishers.

Additionally, Google entered a similar agreement last year with the state of California to help sustain local news organizations.