Google pays out $69 mn to Canadian news outlets under new legislation

New Delhi: Google has transferred Can$100 million (approximately US$69 million) to Canadian news organisations for the use of their content on its platforms. 

This payment marks Google's compliance with Canada's Online News Act, a piece of legislation aimed at offsetting the loss of advertising revenue that traditional news outlets have experienced due to the dominance of tech giants in the digital advertising space.

The payment was made to the Canadian Journalism Collective, a non-profit entity established to distribute the funds equitably among eligible media businesses. This deal comes in response to the Online News Act, passed in June 2023, which compels tech platforms like Google and Meta to compensate news publishers for content shared or repurposed on their sites. 

While Meta chose to block news content on its platforms in Canada to circumvent the law, Google opted to negotiate a deal.

Under the terms agreed upon, broadcasters will receive 30% of the payment, with the remainder being shared among news publishers. This arrangement is expected to significantly aid newsrooms in producing more high-quality journalism, providing a much-needed financial boost to Canada's media landscape, which has seen a decline in ad revenue over the past decade.

The legislation follows a global trend where countries like Australia and some in Europe have implemented similar laws to ensure tech companies pay for news content.

Google has also indicated its commitment to continue this arrangement, with plans to make another payment at the end of 2025, showing a long-term strategy to support Canadian journalism. 

The implementation of this deal is overseen by Canada's broadcast regulator, which approved the funding in October 2024, giving Google a five-year exemption from the Online News Act in exchange for these payments. This strategy allows Google to continue displaying Canadian news content on its search engine and other platforms without the immediate threat of further regulatory action.