Earlier this year, tech giants Google and Meta found themselves entangled in a Canadian showdown over the Bill C-18, also known as the Online News Act. This legislation sought to make the two companies pay for displaying links to news content, prompting Google to consider blocking news on its platform. The tussle has since come to a resolution, with Google and Canada reaching a mutual agreement.
As reported by Reuters, both parties have reached a deal that ensures news stories remain in search results, with Google committing to an annual payment of C$100 million ($73.6 million) to news publishers in the country. This agreement effectively addresses Google’s concerns regarding Canada’s online news law, designed to compel major internet firms to share advertising revenue with local news publishers.
Canada’s Heritage Minister Pascale St-Onge took it to X to share the news.
Following constructive discussions, our government and Google have reached an agreement – they will contribute to the #OnlineNewsAct. We worked hard to make this possible. This Act is good news for journalism, for online platforms, and for Canadians.
— Pascale St-Onge (@PascaleStOnge_) November 29, 2023
Additionally, instead of engaging in individual negotiations with publishers for payment, Google now has the option to collaborate with a single collective to distribute its contribution across all eligible news businesses based on the number of full-time equivalent journalists employed by those entities, as explained by Canadian Heritage Minister Pascale St-Onge.
Google’s President of Global Affairs, Kent Walker, expressed satisfaction with the Canadian government’s commitment to addressing the core issues raised by Bill C-18. In a statement, Walker affirmed, “While we work with the government through the exemption process based on the regulations that will be published shortly, we will continue sending valuable traffic to Canadian publishers.”
On the other hand, Meta, the other internet giant under the law’s scrutiny, has already taken a different stance. It has blocked news sharing on Facebook and Instagram, citing concerns about the legislation, and is steadfast in its refusal to negotiate with the Canadian government.
The Online News Act, part of a global movement holding internet giants accountable for news payment, was passed in June by the Canadian government. Regulations finalization is underway, with an expected release by the December 19 deadline.
