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Ottawa agrees with Google on contributions made to Canadian media

Ottawa agrees with Google on contributions made to Canadian media

By Omayma othmani

Published: November 29, 2023

Three weeks before the Online News Act, also known as Bill C-18, comes into effect, at a time when the media is going through a crisis and positions are being canceled almost every week, many wondered whether an agreement was possible.

According to a government source familiar with the negotiations, Ottawa and Google agreed at the beginning of the week on the final regulatory framework that will establish a contribution system to help Canadian media.

The total contribution amount, which will be included in the regulation, still needs to be officially determined. According to a CBC source, Google's final contribution will be about $100 million annually. According to our information, the final amount will be indexed annually.

A few weeks ago, Ottawa estimated that the compensations should reach $172 million. Instead, Google estimated the value of its bonds at $100 million.

It is important to take this first step with Google, as confirms the source who requested anonymity because they are not authorized to speak publicly. This is another solution to ensure the continuity of the media and restore balance between commercial platforms.

Simplified negotiations...

In addition to the size of the financial demands, Google expressed last October its concern about what its spokesperson Shay Bourdy described as critical structural issues in the Online News Act. The company refused the imposition of a mandatory negotiation and arbitration model on it with Canadian news organizations and preferred to deal with a single contact point.

The regulation now allows a negotiation model with a single group, which would represent all the media, and which could allow Google to reduce arbitration risks.

Thus, Ottawa has succeeded in calming the concerns of the search engine giant that threatened to block Canadian journalistic content on its platform.

The source explained that it wanted to know how much it would cost and with whom it would negotiate.

Also, the rules negotiated by the government will be added to the legislative framework to be disclosed by mid-December. Google will still be required to negotiate with the media and sign an agreement.

The web giant can also add service contributions in the negotiations that have not yet been specified.

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