Canada and Google have struck a significant deal requiring Google to pay Canadian media outlets for using their content.
Announced by the federal government, the deal follows extensive negotiations. It’s a response to the media’s financial challenges.
Pascale St-Onge, Canadian Heritage Minister, confirmed the agreement in Ottawa. Google promises CAD 100 million annually, adjusted for inflation.
This financial support marks a major step in media compensation. The Canadian government, however, retains the right to revise the agreement.
This condition applies if more favorable terms emerge in other countries.
Prime Minister Justin Trudeau praised the agreement. He highlighted its importance for journalists, especially in smaller local media.
Trudeau described the deal as a democratic model, ensuring ongoing support for the media sector. Originally, the government sought CAD 172 million from Google.
The agreement arises amid a dispute over Canada’s new Online News Act. This act, known as Bill C-18, aims to support news outlets financially.
It requires tech giants to make deals with media companies for content distribution. Scheduled for December 19, this law has faced opposition from Google and Meta.
Google threatened to block news sites
In early October, Google threatened to block news sites on its search engine. This was a response to the Canadian law.
Under the agreement, Google will negotiate with a single group representing all media. This approach aims to reduce the risk of complex legal disputes.
Meta, owning Facebook and Instagram, has already restricted news content access in Canada. This action started on August 1.
The media sector views this deal positively. Brent Jolly, president of the Canadian Association of Journalists, expressed relief.
He acknowledged the deal’s significance for the industry’s future.
Kent Walker, Google’s Director of Public Affairs, appreciated the government’s attention to their concerns.
Yet, the media advocacy group “Les Amis” expressed doubts. They fear the sum might not suffice to address the media crisis.
Marla Boltman, director-general of Les Amis, hopes for additional support measures.
This legislative move by the government aims to revive the press in Canada. It addresses the shift of advertising revenue to digital giants, a trend impacting the media industry.
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