Canada’s government announced on Wednesday that it has reached an agreement with Google, securing a commitment from the tech giant to contribute $100 million Canadian dollars annually to the country’s news industry. This move aligns with a recently enacted Canadian law mandating that technology companies compensate publishers for the use of their content. The agreement effectively resolves the previous threat by Google to block access to Canadian news on its platform within the country. In contrast, Meta, the parent company of Facebook and Instagram, has already been blocking Canadian news content since earlier this year.
Canadian Prime Minister Justin Trudeau highlighted the significance of Google’s commitment, emphasizing the support for journalists and local journalism. The Minister of Canadian Heritage, Pascale St-Onge, specified that Google’s annual contribution of $100 million Canadian dollars, indexed to inflation, will provide financial support to various news businesses across the country.
Canada implemented the Online News Act in late June, compelling tech giants to remunerate publishers for utilizing their content online. Meta responded by blocking news content in Canada on its platforms, and Google’s parent company, Alphabet, had initially announced a similar intention. The agreement with Google averts such a blockade, contributing to the ongoing global conversation about the challenges faced by media landscapes in various countries.