Google has announced a payment of Can$100 million, which translates to nearly 600 crores in Indian Rupees, to Canadian news outlets to compensate media organisations whose content is shared or repurposed on Google’s platforms. This deal is a direct response to Canada’s Online News Act, designed to address declining revenues in the Canadian news industry.
Google’s Response to the Canadian Online News Act
Enacted in 2023, the Online News Act mandates tech giants like Google and Meta to compensate news publishers for their content. While Meta chose to block news content on platforms like Facebook and Instagram to avoid payments, Google opted to adhere to the legislation.
Paul Deegan, president of News Media Canada noted that the funds would provide a crucial lifeline for struggling newsrooms, enabling them to deliver comprehensive coverage of democratic institutions and other key issues.
Also Read
Canada’s broadcast regulator approved the deal in October 2024. Under the agreement, 30% of the funds will go to broadcasters, while the remaining 70% will be allocated to other news publishers. The payment comes as a relief for the Canadian news sector, which has faced a decade-long decline in advertising revenues, resulting in the closure of numerous publications.
Google reportedly confirmed plans for an additional payment to be made at the end of 2025. The Can$100 million injection is expected to revitalise newsrooms across Canada, helping them produce in-depth and fact-based reporting.