Canada’s print media is to receive nearly two-thirds of an annual C$100 million (US$74.64 million) payment from Google to the country’s news outlets in exchange for distribution of their content, the federal government announced on Friday.
At the end of last month, after months of negotiations, Ottawa and Google announced a “historic” agreement, in which the tech giant would pay Canadian media companies compensation for the loss of advertising revenue.
“The share that television and radio will receive is capped at 30 percent, that of CBC/Radio-Canada [Canadian Broadcasting Corp] at 7 percent, which leaves the remaining 63 percent for the written press,” a federal official told journalists at a briefing.
Photo: AP
Most of the payout would go to the print media because it is “really dependent” on online platforms to distribute its content, the official added.
“Canada has accomplished something historic,” Minister of Canadian Heritage Pascale St-Onge told reporters, adding that “newsrooms are experiencing a crisis which affects journalism, a foundation of our democracy.”
“As part of the deal, Google provided assurances that Canadian news outlets will be treated fairly in comparison with deals it might strike with news media in other countries,” Radio Canada International reported on Friday.
“The federal government said that if news outlets in other countries strike a better deal with Google, the company would go back to the federal government with a view to resolving any concerns,” it added.
The agreement between Canada and Google is part of the Online News Act, which aims to support the struggling Canadian news sector, which has seen a flight of advertising dollars and hundreds of publications closed in the past decade.
The deal goes into effect on Tuesday.
Facebook’s parent company, Meta, which is also affected by the new legislation, still opposes the text, which it called “fundamentally flawed.”
“We will continue to push Meta, that makes billions of dollars in profits, even though it is refusing to invest in the journalistic rigor and stability of the media,” Canadian Prime Minister Justin Trudeau told reporters in Vancouver.
Meta said it will stick to its decision.
“News outlets choose to use our free services because it helps their bottom line, and today’s release of final regulations does not change our business decision,” said Rachel Curran, head of public policy for Meta Canada.
Since Aug. 1, Facebook and Instagram have blocked news content in Canada to avoid having to compensate media companies.
St-Onge said the Canadian Radio-television and Telecommunications Commission would “pay close attention to Facebook and Meta” as part of its enforcement.
Additional reporting by Reuters and staff writer
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