What you should know
- Google and Meta were involved in a dispute with the Canadian government over the Bill C-18, also known as the Online News Act, which aimed to make the tech companies pay for displaying links to news content.
- Google and Canada have reached an agreement where Google will make an annual payment of C$100 million ($73.6 million) to news publishers in the country, ensuring that news stories remain in search results.
- Google can choose to collaborate with a single collective to distribute its contribution across all eligible news businesses, based on the number of full-time equivalent journalists employed by those entities.
- Meta, however, has blocked news sharing on Facebook and Instagram due to concerns about the legislation and has refused to negotiate with the Canadian government.
- The Online News Act, which is part of a global movement holding internet giants accountable for news payment, was passed in June by the Canadian government, with regulations expected to be finalized by December 19.
Full Story
This year, Google and Meta, two tech titans, got caught in a Canadian legal tangle. The bone of contention? Bill C-18, or the Online News Act. The aim of this legislation? To get these companies to cough up cash for displaying news links.
Google’s reaction was to contemplate a news blackout on its platform. But, the dust has settled now. Google and Canada have reached a compromise, and it’s a win-win.
According to Reuters, a deal’s been struck. It ensures that news stories stay in search results. Google’s part of the deal? An annual payment of C$100 million ($73.6 million) to Canadian news publishers.
This agreement effectively tackles Google’s worries about Canada’s online news law. The law’s purpose is to force big internet firms to share ad revenue with local news publishers.
Canada’s Heritage Minister, Pascale St-Onge, took to Twitter to broadcast the news. She tweeted, “Following constructive discussions, our government and Google have reached an agreement – they will contribute to the #OnlineNewsAct. We worked hard to make this possible. This Act is good news for journalism, for online platforms, and for Canadians.”
Google’s got a new way to pay publishers now. Instead of haggling with each publisher individually, Google can partner with a single collective. This collective will distribute Google’s contribution across all eligible news businesses. The distribution will be based on the number of full-time equivalent journalists employed by those entities, as explained by St-Onge.
Kent Walker, Google’s President of Global Affairs, gave a thumbs-up to the Canadian government’s commitment to addressing the core issues raised by Bill C-18. In a statement, Walker said, “While we work with the government through the exemption process based on the regulations that will be published shortly, we will continue sending valuable traffic to Canadian publishers.”
Meta, on the other hand, is playing a different game. The other internet giant under the law’s scrutiny has blocked news sharing on Facebook and Instagram. Their reason? Concerns about the legislation. And they’re sticking to their guns, refusing to negotiate with the Canadian government.
The Online News Act, a part of a global movement holding internet giants accountable for news payment, was passed in June by the Canadian government. The finalization of regulations is in progress, with an expected release by the December 19 deadline.
