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Google exempt from Online News Act for five years, must pay news outlets $100M: CRTC

Darpan News Desk The Canadian Press, 28 Oct, 2024 04:10 PM

The Canadian Radio-television and Telecommunications Commission has granted Google a five-year exemption from the Online News Act, ordering it to release the $100 million it now owes to Canadian news outlets within 60 days.

Google agreed last year to pay Canadian news publishers $100 million a year, indexed to inflation, in order to be exempt from the law, which compels tech companies to enter into agreements with news publishers to pay for content reposted on their platforms.

The Canadian Journalism Collective has been tasked with distributing the money to news outlets.

The CRTC said in its decision Monday that it believes Google has met the requirements for an exemption, but has added stipulations including that it must allow more news businesses to join the collective.

"After reviewing the public record, the CRTC is granting a five-year exemption from the act to Google. Google must pay $100 million to the (Canadian Journalism Collective) within 60 days of this decision. The CJC will then distribute the funds equitably to eligible Canadian news organizations," the CRTC said in a news release.

News Media Canada, which represents hundreds of publishers, said in a statement that it is "very pleased" with the CRTC's decision.

"The Online News Act is a world-leading regulatory framework that addresses the significant bargaining power imbalance between platforms and publishers when it comes to content licensing," said the group's president and CEO Paul Deegan.

He said it's now time for Meta, the parent company of Facebook and Instagram, to follow Google's lead.

"We now call on Meta, whose platforms are more valuable with real news produced by real journalists, to follow Google's socially responsible lead," Deegan said.

The Canadian Journalism Collective submitted plans for its governance structure to the CRTC in July.

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