Google And Canada Reach Deal To Avert News Ban Over Online News Act

Google has agreed with Canada to avoid a news embargo caused by a law requiring tech companies to pay for news content.

In reaction to the Online News Act, which goes into force on December 19, Google promised to remove links to Canadian news.

As a result of the law, social media company Meta has already blocked news on its sites.

The agreement came after months of negotiations between Google and Canada.

The law mandates Google and Meta, the owners of Facebook and Instagram, to establish payment deals with news providers.

Google And Canada Reach Deal To Avert News Ban Over Online News Act

The arrangement unveiled on Wednesday requires Google to pay news outlets C$100 million (£58 million, $74 million) per year, linked to inflation.

The funds will be utilized for “a wide range of news businesses across the country, including independent news businesses and those from Indigenous and official-language minority communities,” according to an announcement made by Canadian Heritage Minister Pascale St-Onge on Wednesday.

According to the announcement, Google will pay a “single collective” to distribute the monies to eligible news organizations “based on the number of full-time equivalent journalists employed by those businesses.”

“A sustainable news ecosystem is good for everyone,” Ms St-Onge said, adding that newsroom closures and layoffs put “the health of the Canadian news industry at risk.”

Google And Canada Reach Deal To Avert News Ban Over Online News Act

When Canada’s Online News Act was passed this summer, it was met with anger from tech corporations, while many media groups applauded it as a positive step toward market fairness.

Google called the plan “unworkable” and said it sought a “path forward” with the government.

“This unprecedented decision to put a price on links breaks the way the web and search engines work,” the business claimed in a blog post.

On August 1, Meta began blocking Canadian news material on Facebook and Instagram. When people try to read news on those platforms, they get notices claiming they can’t see the information in Canada or that no posts are available.

According to one estimate, news organizations might have earned up to C$329 million ($248 million; £196 million) per year from digital platforms due to the law’s enactment.

In reaction to a similar rule, Australian users were barred from posting or reading news on Facebook in 2021.

Google And Canada Reach Deal To Avert News Ban Over Online News Act

Australian MPs changed the law after Meta temporarily barred Australian users from sharing or watching news on its services.

When the adjustments were implemented, the blackout ended, and Google and Meta have subsequently struck more than 30 arrangements with Australian media firms.

The Canadian government has proposed a new law that would allow news organizations to negotiate payment with tech companies for reusing their content. This move is similar to Australia’s recent news media bargaining code, which requires tech giants like Google and Facebook to pay for news content.

If passed, this law could have significant implications for the relationship between news publishers and digital platforms, potentially reshaping the digital news landscape in Canada.

SOURCE – (BBC)