Canada and Google Find Common Ground on Online News Act

‍Google and the Canadian federal government have reportedly settled their differences concerning the Online News Act. This news comes just weeks before the enactment of the new regulations, according to reliable sources.

The resolution comprises a commitment from Google to continue featuring Canadian news on its platforms. In return, the tech giant will make annual payments to news companies, estimated at around $100 million. This deal was reached after the government and Google agreed on a regulatory framework.

Previously, the government had estimated Google’s compensation to be approximately $172 million, whereas Google had set the value at $100 million.

Google had raised objections to what it termed as “critical structural issues” in the Online News Act, also known as Bill C-18. Google insisted on negotiating with a single point of contact instead of a mandatory discussion model with Canadian media organizations.

The new regulations will enable Google to negotiate with a single body representing all media, thus minimizing its arbitration risk. These rules will be incorporated into the C-18 legislative framework, expected to be unveiled by mid-December.

Despite the new agreement, Google is still obligated to negotiate with the media and sign an agreement. The digital giant could also contribute additional services, although these are yet to be defined.

In the event of the legislation passing, Google had threatened to block Canadian news content on its platforms. However, unlike Meta, which terminated its negotiations with the government last summer and ceased distributing Canadian news on Facebook and Instagram, Google has not blocked news in Canada.

Faced with Google’s threat to cease distributing Canadian news, the government seems to have adjusted its stance. However, a government source claims that the agreement is a victory and a net gain for Canadian media. The single negotiation framework is likely to set a precedent for other countries, the source added.

Bill C-18 applies to digital platforms with 20 million unique monthly users and annual revenues of $1 billion. Only Meta and Google currently meet these criteria.

Meta’s (Facebook) negotiations with the government have not yet resumed.