Google Agrees to $100 Million Annual Payment for News in Canadian Search Results

By: Insha Hashmi

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Updated on: 30-Nov-2023

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In order to allow news articles to appear in search results, Google and the Canadian government reached an agreement wherein Google will pay Canadian news publishers C$100 million a year.

The Canadian legislative framework requires internet companies to split advertising income with news publishers in order to maintain the news industry's viability and maintain a balance between the interests of tech giants and news publishers' digital role.

In an announcement regarding the successful implementation of Canada's Online News Act (Bill C-18) with Google, Heritage Minister Pascale St-Onge stressed the value of positive communication between governments and tech companies in resolving regulatory issues and promoting cooperation for the good of the digital environment and news publishers.

What Google says

Kent Walker, President of Global Affairs at Alphabet, expressed gratitude to the Canadian government for passing Bill C-18, which addresses important concerns. Google will keep driving critical traffic to Canadian publishers as it works on the exemption process, underscoring the two firms' cooperative approach and dedication to helping Canadian publishers in the face of changing regulatory environments.

The Online News Act of Canada

The Online News Act was approved by Canada in June with the goal of creating a framework that would allow big tech corporations to give money to news publishers while also taking into account the rapidly changing nature of digital news and technology.

The Canadian government is finalizing rules for the Online News Act, expected to impact tech giants and news publishers, and align with international efforts to create a sustainable news ecosystem by December 19.

Google has expressed concerns about Canada's Online News Act, comparing it to European and Australian regulations. The company fears potential open-ended liabilities and the possibility of blocking news content.

These concerns highlight the complexities of aligning digital platforms with evolving regulatory landscapes, particularly in balancing tech corporations' interests with the news industry. Google's recent agreement with the Canadian government aims to address these concerns.

Parent company of Facebook and Instagram, Meta Platforms, has expressed reservations about the Online News Act, calling it "fundamentally flawed," and as a result, has restricted news sharing on its Canadian platforms.

As the changing regulatory environment continues to influence how Canadian tech corporations interact, reports indicate that Google will negotiate with a single representative group in the final regulatory language of Bill C-18. This will streamline the negotiation process and lessen the complexity of engaging with multiple outlets.

Premier Justin Trudeau has expressed appreciation to Google for their support of local news and the equitable remuneration of independent journalists. As a result, Google has decided to back local journalism.

Trudeau highlighted a cooperative effort to strike a balance between the interests of digital giants and the vibrancy of journalism in Canada, noting the government's commitment to fair remuneration in the news business and Google's support for local news outlets.