Google agrees to pay USD69M to use new stories from Canadian media outlets
(MENAFN) Google has agreed to pay USDCAN100 million (approximately USD69 million) to use news stories from Canadian media outlets on its platform, the company announced on Friday. The payment is part of an agreement that follows the introduction of the Online News Act, which requires major tech companies like Google and Meta to compensate Canadian media for using their content. This move comes as Canadian news outlets have faced challenges in staying afloat due to lost advertising revenue to tech giants like Google and Meta.
The money from the deal will be distributed to Canadian media companies by the Canadian Journalism Collective (CJC). Unlike Google, Meta has refused to comply with the Online News Act and responded by blocking Canadian news content on its platforms, including Facebook and Instagram, to avoid paying the CJC.
Under the terms of the agreement, 30 percent of the USD100 million will go to broadcasters, with the remaining funds being divided among news publishers. Paul Deegan, President of News Media Canada, stated that the funding would help improve the financial health of Canadian newsrooms, allowing them to produce more quality coverage of democratic institutions. News Media Canada represents the country's major broadcasters and publishers.
For Google, the deal provides access to high-quality, fact-checked content produced by Canadian journalists. The non-profit CJC will manage the distribution of the funds, with publishers receiving USD13,798 for each employed journalist, while smaller outlets will get USD17,000 for each full-time journalist. The agreement also grants Google a five-year exemption from the Online News Act, marking a significant development in the Canadian government's push to ensure big tech companies pay for the content they use.
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