Google and Canada reach deal
In a significant turn of events, Google has successfully negotiated a deal with Canada, averting a potential news blockade in response to the country's Online News Act. The legislation, set to take effect on December 19, mandates tech giants like Google and Meta to pay for news content.
Meta has already implemented news restrictions on its platforms in compliance with the law. The recently announced agreement requires Google to annually pay C$100 million, indexed to inflation, to news outlets.
This funding aims to support various news businesses nationwide, including independent, Indigenous, and official-language minority community outlets. The Canadian Heritage Minister, Pascale St-Onge, emphasized the importance of a sustainable news ecosystem for the country and noted the funds would be distributed based on the number of full-time equivalent journalists engaged by eligible news agencies.
Google expressed satisfaction with the Canadian government's commitment to addressing their concerns, acknowledging the ongoing collaboration. The Online News Act, initially met with resistance from tech companies, has been hailed by many media groups as a positive step toward ensuring fairness in the market.
Google had criticized the legislation as "unworkable," citing concerns about breaking the traditional functioning of the web and search engines. Meta had already initiated news content restrictions on Facebook and Instagram, leading to messages indicating the unavailability of content in Canada.
The negotiation process resulted in a final compensation figure of C$100 million, following extensive discussions. The Canadian government emphasized the need to provide certainty to Google regarding the compensation amount for news outlets.
This resolution comes at a critical juncture for the Canadian news industry, which faces challenges such as newsroom closures and workforce layoffs. The announcement reflects the government's commitment to supporting the industry's health and stability.
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