Google and Canada reach an agreement in their dispute over the country's Online News Act; Google plans to pay news companies around CA$100M, or ~$74M, per year

Agreement comes 3 weeks before Online News Act rules come into force — Google and the federal government have reached …

CBC News 2023-11-30

Context & Ripple Effects

Canada had been trying to revise Bill C-18’s payment framework while Google and Meta objected; Meta’s stated plan to continue blocking news made Google’s negotiated path especially consequential. The later five-year exemption for Google shows this agreement became the basis for the law’s operating model.

The arrangement also fits a broader pattern of negotiated support for publishers, following Google’s payment agreements with French publications.

First-order effects

Google avoids an immediate dispute over the Online News Act’s implementation by committing about CA$100M annually for Canadian news companies.
Canadian news companies gain a defined funding commitment, while the government can bring the new framework into force without Google withdrawing news access.

Second-order effects

Google’s deal creates a clear contrast with Meta’s planned news blocking, leaving Canadian publishers with uneven access to major platforms and referral channels.
The agreement shifts the policy debate from the headline value of platform payments to how a pooled contribution is administered and distributed among publishers.

Third-order effects

If replicated, negotiated collective funds could become a more durable alternative to link-by-link bargaining between news publishers and dominant platforms.
The model also makes platform-news policy increasingly dependent on regulatory oversight: later coverage shows an exemption tied to payment and subsequent regulatory-cost recovery.

The trend: Online-news laws are evolving from confrontational platform-payment mandates toward regulated, collectively administered funding arrangements for publishers.

Discussion

@dangillmor@mastodon.social Dan Gillmor on mastodon
The Canadian government, in tandem with Big Media, has succeeded in its extortion scheme against Google — to the tune of $100 million. This is a sickening capitulation by Google, which has increasingly shown both cowardice and contempt for the open-Internet values it once claime…
@johnefrancis@mastodon.social John Francis on mastodon
Kind of feels like the govt. blinked and gave #Google what they wanted - access and influence over Canadian news as cheap as possible, with a continued stronghold over the ad market and the very problematic collection and sale of private information for ad targeting. — News org…
@jengerson Jen Gerson on x
For obvious self-interested reasons, I'm very happy that Google struck some kind of face-saving deal with the government. But that's what this is: Google got everything it wanted out of such a deal. https://www.michaelgeist.ca/ ...
@mgeist Michael Geist on x
Reports seem to indicate the Bill C-18 deal with Google is for $100M with a payment to a single collective. Essentially functioning like a fund. In other words, roughly what Google said it would do *a year ago*. Subtract the Meta loss and this could not have been handled worse.
@ssolyom @ssolyom on x
So all those people who opined long and loud about the stupidity and futility of the Government of Canada taking on giants like Meta and Google... y'all are going to re-evaluate your fundamental paradigms, right?
@unbranded63 @unbranded63 on x
Just a reminder that Poilievre thought Canada should cave in to Google and META. Google is now going to pay Canadian media. Conservatives also thought we should have caved in to Trump on NAFTA. Freeland wouldn't allow it. Cons are weak. They'd let anyone stomp all over Canada.
@taleeb Taleeb Noormohamed on x
Big news! As part of our implementation of C-18, today we announced that Google will make annual payments of $100M to support Canadian news companies. This is a huge win for Canada, for Canadian news outlets and journalism - and democracy. [image]
@adamkovac Adam Kovacevich on x
This deal doesn't change the reality that bills like @BuffyWicks CJPA are promoted by news hedge funds and would help Fox News much more than the Bakersfield Calfornian or Visalia Times-Delta. Does CA really want to be used as pawns to help News Corp? https://medium.com/...
@farhanmohamed Farhan Mohamed on x
Calling today's announcement between the feds and Google on Bill C-18 a “huge win” for Canadian news outlets is great spin. Let's remember: Feds promised: • $230M+ annually from Google and Meta Feds delivered: • $100M from Google • Meta leaving news in Canada and any ability …
@jengerson Jen Gerson on x
A hard cap on contributions, and a single-payer fund. When it amalgamates all the existing commercial deals, it's very likely that Google is no worse off than it was prior to C-18.
@bcmerchant Brian Merchant on x
I know this mechanism isn't perfect, and there are very valid concerns about smaller orgs getting left out of the picture, but by and large this is a major victory. It shows we *can* get the tech giants to pay their fair share for using journalists' work on their platforms.
@mgeist Michael Geist on x
Supporters of Bill C-18 acknowledging the obvious: deal falls far short of what government promised. In fact, it's particularly bad for independent media since once broadcasters and large print publications get paid, unlikely to be significant money left. https://x.com/...
@pascalestonge_ Pascale St-Onge on x
This is good news for journalism, for Google, and for Canadians. With this, we've shown that it is possible to build a viable, equitable and independent news ecosystem.
@mitchell_ab Deirdre Mitchell-MacLean on x
I've seen that Meta will post links to Canadian news outlets if it's “sponsored”. Meta actually made money by refusing C-18 because now those same media outlets have to pay for the links to show up.
@c_anthonymilton Anthony Milton on x
Today, Google agreed to inject $100M into Canada's news sector. In Australia, Meta and Google combined paid news orgs about $190M CAD under their law. If Google's share was 50%, that's $90M CAD. Aus has 25M people. Canada has 40M. That's $3.6/person in Aus vs. $2.5 in Canada.
@jengerson Jen Gerson on x
Meanwhile, there is now almost certainly less money/value going into media the media than there was prior to C-18, esp. when we include lost value of direct $ from Meta + lost distribution.
@emilybell Emily Bell on x
@bcmerchant It is so deeply ironic that the ONE THING that has unlocked real support for news - smaller outlets included - is not really championed by any of the movements coalescing around news support in the US. My own theory is that this tracks to the lobbying money Google + F…
@pablorodriguez Pablo Rodriguez on x
Standing up for Canadians always pays off. It's a good day for Canadian news, local journalism, and democracy.
@mgeist Michael Geist on x
My initial thoughts on Google deal. Good news there is an agreement, but hardly a big win with less than $100M in new money in a deal available a year ago, harm from Meta's news exit and government upending Bill C-18's core principles to salvage the bill. https://x.com/...
@seamusoregan Seamus O'Regan Jr on x
$100 million a year to support local and national journalism. This is a big deal. This is a great deal. Well done @PascaleStOnge_ https://www.ctvnews.ca/...
@bcmerchant Brian Merchant on x
Every news org in the US should be watching. *California*, which has a bill in progress to do much the same, should take notes. I argued earlier this year that CA must call the tech giants' bluff when they claim they'll abandon news—this is why. https://www.latimes.com/...
@jeffjarvis @jeffjarvis on x
Google worked hard to salvage a relationship with news in Canada, to its credit. I wonder what this portends for the bad version of this legislation in the US and California and elsewhere. Idiot pols could force Facebook out if they're not careful.
@mgeist Michael Geist on x
On Google and Bill C-18: was clear for months that government and industry desperately needed to salvage something from Bill C-18. No deal would have been bad for everyone. The $129M bailout cushions Meta blow and this deal suggests government traded tough talk for compromise.
@googlecanada @googlecanada on x
Following extensive discussions, the Government of Canada has committed to addressing our core concerns with Bill C18. We thank Minister @PascaleStOnge_ for deeply engaging with us.
@metacognishane Shane Littrell, PhD on x
Bill C-18 is misguided & nonsensical. No idea why Google caved (other than $100M is pocket change to them) but I feel they shouldn't have. Two US companies (curiously, the bill only targets Google & Meta) shouldn't be forced to subsidize an unrelated failing industry in Canada.
@adamkovac Adam Kovacevich on x
It's not a surprise that Google would cut a side deal here. But Canada following Australia's example of “we'll enforce the law unless you pay up” is unprincipled, gross, and likely to benefit big publishers over small ones.
@bcmerchant Brian Merchant on x
This is *huge* After the passage of the Online News Act, Canada has reached a deal with Google in which the tech giant will pay ~$100 million a year to media companies for the right to use their stories on its platform. https://www.cbc.ca/...
@doncochraneyow Don Cochrane on x
“The agreement would see Canadian news continue to be shared on Google's platforms in return for the company making annual payments to news companies in the range of $100 million.” Federal government reaches deal with Google on Online News Act. (Link) https://www.cbc.ca/...
@supriyadwivedi Supriya Dwivedi on x
Well that's weird...so many people on here told me this was impossible and that c-18 was going to be dead on arrival. Will be interesting to see if Google sets the Canadian parameters as their benchmark for other soon to be regulated markets like the UK https://www.cbc.ca/...
@slikk519 @slikk519 on x
Hey check this out, govt legislation worked, Google will have to pay to post Canadian news! I wonder if @PierrePoilievre will apologize for the misinformationhe spread and stance on the legislation #cdnpoli https://www.google.com/... [image]
@andrewlawton Andrew Lawton on x
The federal government has managed to extort $100 million from Google to subsidize Canadian media companies. The worst part? CBC will be getting a large share of this, despite already receiving over a billion dollars a year from taxpayers. https://www.cbc.ca/...
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