Canada's broadcasting regulator approved the agreement in October 2024. According to the terms of the deal, 30% of the funds will be directed to broadcasters, while the remaining 70% will be distributed among other news publishers. This financial support is seen as a significant relief for the Canadian news industry, which has experienced a prolonged decline in advertising revenues over the past decade, leading to the closure of many publications.

Reports indicate that Google has confirmed plans for an additional payment to be made by the end of 2025. This Can$100 million investment is anticipated to rejuvenate newsrooms throughout Canada, enabling them to produce comprehensive and fact-based journalism.

Google has committed to a payment of Can$100 million, equivalent to nearly 600 crores in Indian Rupees, to Canadian news organizations as compensation for the use of their content on Google's platforms. This agreement is a direct response to Canada's Online News Act, which aims to tackle the issue of declining revenues within the Canadian news sector.

Google's Response to the Canadian Online News Act

Enacted in 2023, the Online News Act requires major technology companies such as Google and Meta to financially compensate news publishers for their content. In response to this legislation, Meta decided to restrict news content on platforms such as Facebook and Instagram to evade payments, whereas Google chose to comply with the law.

Paul Deegan, the president of News Media Canada, emphasized that the financial support would serve as an essential resource for newsrooms facing difficulties, allowing them to provide thorough coverage of democratic institutions and other significant matters.

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