Google pays Can$100 million to Canadian media for content use

Google has recently paid Can$100 million to Canadian news outlets to use their content on its platform. This development is part of a deal made with the government to address the loss of advertising revenues faced by news organisations.

Canada’s Online News Act passed in 2023, requires tech platforms to compensate news publishers, similar to policies adopted in Australia and parts of Europe. Google and Meta, which collectively control 80% of Canada’s advertising revenue, have faced criticism for profiting from news content without paying for it. 

The funds were transferred to the Canadian Journalism Collective, a non-profit responsible for distributing the money. News Media Canada President Paul Deegan praised the arrangement, calling it ‘far superior’ to similar deals in other countries, according to the report. Under the agreement, Canadian newsgroups could receive up to Can$20,000 per journalist, helping newsrooms produce more high-quality journalism.

The funding aims to bolster Canada’s struggling local news sector, which has suffered significant losses over the past decade, including a sharp decline in advertising revenue and the closure of hundreds of publications. Google’s payment is expected to help news organisations cover democratic institutions and maintain fact-based reporting.

The company has signalled its intention to continue the agreement, with another payment planned for the end of 2025. Broadcasters will receive 30% of the funds, while the rest will be distributed among news publishers.

In contrast, Meta has reportedly chosen to block news content on Facebook and Instagram in Canada to avoid compensating media companies.