Google pays $69M to Canadian media outlets for using content
What's the story
Google has announced a payment of CAD 100 million (approximately $69 million) to Canadian news outlets, for using their content on its platform.
The move comes as part of an agreement with the Canadian government, aimed at compensating the loss of advertising revenues suffered by these outlets.
Earlier, tech giants like Google and Meta were criticized for monopolizing about 80% of Canada's total advertising revenue.
Fund allocation
Funds transferred to Canadian Journalism Collective
The money from Google has been paid to the Canadian Journalism Collective, a non-profit organization tasked with distributing the funds. A Google representative confirmed the transaction.
The tech giant also said it plans to continue this arrangement by making another payment at the end of 2025.
This comes after Canada introduced the Online News Act in 2023, requiring tech platforms to pay news publishers in distress.
Industry impact
Landmark deal to boost newsrooms
Paul Deegan, the President of News Media Canada, hailed the deal as "far superior" to similar agreements elsewhere.
He expects Canadian news groups could get up to CAD 20,000 (around $13,840) per journalist from this funding.
Deegan hoped the funds will give a much-needed boost for newsrooms "to produce more high-quality coverage of our democratic institutions," while Google "benefits tremendously from the fact-based, fact-checked content our journalists produce."
Regulatory approval
Google's funding deal approved by Canadian regulator
The funding deal between Google and Canadian news outlets was approved by Canada's broadcast regulator in October last year.
Under the agreement, broadcasters will get 30% of the money from Google, with the rest being shared among news publishers.
This comes after Meta's Facebook and Instagram blocked news content in Canada to avoid paying media companies, something Google had also considered before announcing this funding deal.