After months of negotiations, Canada and Google reached an agreement under which the American company would compensate Canadian media outlets for sharing or reusing their news content. The internet giant will pay 100 million Canadian dollars (about 74 million US dollars) each year, although this amount will be indexed to inflation. Google thus undertakes to adhere to the law on online information, approved on June 22 and which will come into force on December 19.

The regulation seeks to inject resources into an information ecosystem primarily affected by reduced advertising and subscription revenue. Since 2008, more than 450 editorial offices across the country have closed their doors. As part of the deal, Google will make payment to a single entity representing media outlets, instead of negotiating deals with each of them. The company had threatened to block information intended for its Canadian users. In early August, Meta ended the availability of news content on Instagram and Facebook in Canada.

Canadian government estimates during debates over the Online Information Act (bill known as C-18) indicated that Google would have to contribute approximately C$172 million. This Wednesday's announcement indicates that there will be 72 million fewer. Pascale St-Onge, federal Minister of Canadian Heritage, declared that this agreement represents “a historic moment” since it establishes a fairer system for the media. He also stressed that the Canadian government was able to “respond to Google's concerns.” The minister clarified that Canada reserves the right to review the terms if Google obtains a more advantageous agreement in other countries.

Prime Minister Justin Trudeau stressed that this commitment “will serve to ensure that journalists, including those from small local media outlets, are supported for years to come.” Trudeau also said that many countries are closely following the new Canadian regulations. The Online Information Act was based on that adopted by Australia in 2021, while adding more rigorous points.

In addition to blocking the information of Canadian users on Instagram and Facebook, Meta froze various agreements and exchanges previously signed with Canadian media and cut off contacts with the authorities of the North American country. In response, the Canadian government stopped buying advertising on both platforms. Quebec joined the decision, as did various media in the province.

Following the announcement of the Google deal, a representative for Meta told CTV News that Canadian regulations, in their current form, remain “unsustainable” for the company. Negotiations remain at a standstill. “Unfortunately, Meta continues to completely abdicate any responsibility to democratic institutions,” Trudeau said Wednesday. Pascale St-Onge added that Facebook must explain “why it allows disinformation on its platform instead of supporting our new system and participating in the viability of our information sector.”

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