Google to pay $100M to Canadian news outlets, CRTC confirms

Canada’s telecommunications regulator has rubber-stamped Google’s plan to dole out $100 million to the country’s embattled news sector, clearing the way for the global search giant to sidestep the Liberal government’s contentious online news law.

 

The Canadian Radio-television and Telecommunications Commission (CRTC) announced Monday that it had given Google a five-year exemption from the law, and ruled that the cash must be given to the group responsible for distributing the money within 60 days.

 

“The CRTC’s decision is not only an important step forward for Canadian media, but also globally,” read a statement from that group, the Canadian Journalism Collective (CJC).

 

“Jurisdictions around the world are watching Canada. We can now offer a model that ensures Big Tech compensates news media for their content equitably and fairly across the entire news media ecosystem.”

 

The move brings an end to more than two years of friction between Google, the federal government, and the country’s news industry over a piece of legislation designed to end web giants’ dominance of the digital advertising market.

 

The Online News Act, as it’s known, was opposed by tech companies like Google and Meta who argued that media outlets actually benefited from their platforms driving traffic, at no cost, to news sites. The legislation forces digital giants into mandatory bargaining to strike payment deals if they do not reach agreements with news outlets on their own.

 

The law was backed by many news organizations, including Torstar, which publishes the Toronto Star. But it drew backlash from some smaller and more online-focused outlets who relied on Google, and Meta’s Facebook and Instagram, to help keep their operations afloat.

 

Both companies initially threatened to ban Canadian news content from their platforms in retaliation for the law. Meta followed through with that threat last summer, while the federal government averted that outcome with Google by reaching a deal with the search giant late last year.

 

The CRTC also said Monday that eligible news outlets that didn’t apply to receive funds right away could be included in future rounds over the next five years.

 

The regulator’s decision to green light a five-year exemption also puts it at odds with a number of news organizations that wanted to see Google’s proposal approved for one year to see how it would work in practice, before approving it for the remaining years.

 

“The Commission considers that a five-year exemption would provide greater funding stability to news businesses and would require less administration,” the CRTC noted in its final decision.

 

The regulator’s move means the money is expected to start flowing to news outlets by early 2025. That time frame puts it ahead of an expected federal election that could see Pierre Poilievre’s Conservatives — who have vowed to repeal the Liberals’ online regulation laws — form government.

 

“We are very pleased with the CRTC’s decision to grant Google a five year exemption, which will see a half-billion dollars flow to news businesses under strict conditions that ensure the rules will be followed,” read a statement from News Media Canada, which represents hundreds of print and digital outlets.

 

 

“We now call on Meta, whose platforms are more valuable with real news produced by real journalists, to follow Google’s socially responsible lead.”

 

The CRTC is in the process of reviewing whether Meta, which pulled Canadian news from its platforms to avoid being captured by the legislation, is actually complying with the law due to reports of some news content slipping through the ban.

 

The CJC told the Star it plans to lay out how much money outlets could receive per full-time journalist in the near future.

 

CBC/Radio-Canada, which already receives government funding, is expected to receive seven per cent of the million-dollar pot. The country’s remaining broadcasters are set to receive 30 per cent of the total, with print and digital media outlets receiving the remaining 63 per cent of the cash.

 

 

 

This article was first reported by The Star