Google and Meta May Have to Pay Over CAD 230 Million in Canada Under Online News Act – Canada announced proposed guidelines for a bill requiring Alphabet’s Google and Meta Platforms to pay news platforms on Friday, saying Ottawa was addressing the corporations’ worries about unchecked liability.
The Online News Act of Canada, which is part of a global trend to have Internet moguls and titans pay for news, became law in June and is set to go into force in December.
According to the draft legislation, Facebook and Google will be required to voluntarily negotiate partnerships with Canadian news publishers and pay a portion of their global income based on the draft regulations.
Both companies have stated that the rule is untenable for them, and Meta has already stopped disseminating news on its platforms in Canada. Google also intends to remove news from search results in Canada before the legislation takes effect.
A Canadian government official told reporters in a briefing that the proposed plans, which will go through public consultation, would raise CAD 172 million per year from Google and around CAD 60 million per year from Facebook.
If a company fails to meet a payment threshold through voluntary agreements, it may be forced to engage in mandatory negotiation, which is monitored by the Canadian Radio-television and Telecommunications Commission (CRTC).
Last Monday, the Canadian regulator in charge announced that it would begin establishing a framework for discussions between news organizations and internet behemoths this autumn, with the goal of commencing forced bargaining by early 2025.
The proposed guidelines allow for both monetary and non-monetary contributions to news organizations, as well as consideration of pre-existing agreements.
According to the draft regulations, agreements that Google and Facebook reach must also cover independent local, Indigenous, and official language minority community news businesses.