Google navigates Online News Act regulations: secures key exemption amidst concerns
Tashi Farmilo
The Canadian government's recent finalization of the Online News Act regulations has brought significant changes to the landscape of media funding in Canada. Central to this development is a $100-million annual contribution from tech giant Google, part of a strategic agreement following intense negotiations.
Under the new rules, private broadcasters are eligible to receive a portion of this fund, with a cap of $30 million annually. The CBC/Radio-Canada, Canada's national public broadcaster, will have its share limited to $7 million. This move aims to ensure a more equitable distribution of funds among various media entities, including newspapers and digital media. However, a key criterion for eligibility is the accessibility of an outlet's content via Google Search, a stipulation that could sideline some, such as campus radio stations.
This arrangement was precipitated by Google's pledge last month to contribute the said amount annually, an agreement reached in the wake of the company's threat to pull news links from its search engine. This threat led to the Liberal government accommodating certain requirements set by Google.
A significant aspect of this deal is Google's exemption from forthcoming legislation that would require tech companies to negotiate payments with news publishers for linking to their content, especially when it financially benefits these tech firms. In a related development, Meta, the parent company of Instagram and Facebook, has opted to restrict news content access on its platforms for Canadian users in response to the new policy.
Google and Meta stand as the only firms sizable enough to meet the criteria set by the law. Google's approach to compliance involves participating in a collective bargaining group, foregoing individual agreements with publishers.
The law stipulates that upon its effect next Tuesday, Google must initiate an open call for news businesses to apply for a share of the $100 million fund. Eligible companies will have 60 days to submit their applications. The distribution of the funds will be primarily based on the number of full-time journalists employed by each company, with a minimum requirement of two full-time staff members. Smaller print and digital outlets are expected to receive approximately $17,000 per journalist, as indicated by an official from the Canadian Heritage Department.
Despite complying with the regulations, Google has voiced concerns about the Online News Act, labeling it as fundamentally problematic. Nonetheless, the company acknowledges that the final regulations provide a viable way to secure an exemption. This development is crucial for Google, as it allows the company to maintain its traffic direction to Canadian publishers and ensures that Canadians can continue using Google's products without disruption during the exemption process.
This development marks a significant milestone in the relationship between major tech companies and the news publishing industry in Canada, setting a precedent for how digital platforms interact with and support journalism in the digital age.
Photo caption: Digital news and traditional media intersect under the influence of Canada's Online News Act.
Photo credit: Tashi Farmilo
