Online News Act stopped Google from pilfering content for free
Google has paid $CAN100 million ($69 million) to use news stories from Canadian media outlets on its platform, the tech company said Friday.
Canadian news outlets were struggling to survive and lost ad revenue to Google and Meta. Under the Online News Act, both companies were told to pay large sums to the Canadian Journalism Collective (CJC) to compensate news media for using content. The money will be disbursed to the media companies.
Meta refused to pay and has blocked Canadian news content from its platforms, including Facebook and Instagram to avoid paying the CJC.
Under the Google deal, 30% of the $100 million will go to broadcasters and the rest will be divided among news publishers.
News Media Canada President Paul Deegan told AFP news that the funding will bolster cash flow for Canadian newsrooms, allowing them “to produce more high-quality coverage of our democratic institutions.” News Media Canada represents major news broadcasters and publishers.
At the same time, the deal is good for Google because it allows it access to “fact-based, fact-checked content our journalists produce,” said Deegan.
The non-profit CJC will divvy up the money to Canadian news outlets.
Publishers will receive $13,798 for each journalist employed, while small outlets -- digital and print -- will receive $17,000 for each full-time journalist, the Canadian Broadcasting Corporation reported.
The money is a significant step in the federal government's battle to have big tech companies pay for using Canadian news content.
Under the terms, Google receives a five-year exemption from the Online News Act.
