Google has announced the payment of Can$100 million (US$69 million) to Canadian news organizations as part of a groundbreaking agreement under Canada’s Online News Act, aimed at compensating publishers for content shared on its platform.
The tech giant confirmed on Friday that the funds were transferred to the Canadian Journalism Collective, a non-profit organization responsible for distributing the payments. This initiative, which stems from legislation passed in 2023, addresses long-standing concerns about the tech industry’s dominance over advertising revenue.
Google and Meta collectively control approximately 80% of Canada’s advertising market. Critics have accused them of profiting from traditional news content without adequately compensating media outlets, leading to significant financial losses for the journalism sector.
Under the deal, Canadian broadcasters will receive 30% of the funds, while the remaining 70% will be allocated to news publishers. Each journalist is expected to gain up to Can$20,000, providing a much-needed boost for struggling newsrooms.
Paul Deegan, president of News Media Canada, lauded the agreement, calling it “far superior” to similar deals in other countries. He emphasized its role in sustaining high-quality journalism, which he said is crucial for democracy. “Google benefits tremendously from the fact-based, fact-checked content our journalists produce,” Deegan added.
The Online News Act was introduced as part of Canada’s efforts to stabilize its news sector, which has been hit hard by dwindling ad revenues and the closure of hundreds of publications over the past decade.
While Google embraced the agreement, Meta took a different approach, blocking news content on its platforms, including Facebook and Instagram, to avoid compensating media companies.
Google’s compliance with the act followed threats to block Canadian news but was formalized after receiving approval from Canada’s broadcast regulator in October. The deal is expected to continue, with another payment scheduled for late 2025.
This initiative aligns with similar moves worldwide, such as Google’s deal with California to support local journalism, as countries and states push back against the financial dominance of tech giants over traditional media.
