The Canadian Radio-television and Telecommunications Commission (CRTC) has approved Google’s request for exemption under Canada’s Online News Act, paving the way for an annual $100 million contribution from the tech company to Canadian news organizations. This decision represents the first approval under the Online News Act Application and Exemption Regulations, aiming to secure a new funding model to support Canada’s media landscape amid ongoing financial challenges.
The Online News Act, initially introduced as Bill C-18 and passed into law in June 2023, was designed to address the significant financial impact on Canadian news organizations as digital advertising revenues increasingly favor large tech platforms like Google and Meta. This shift has undercut the financial stability of traditional news outlets, with industry analysts noting that newsrooms across Canada have struggled to maintain operations, resulting in staff cuts and closures.
Under this legislative framework, the Online News Act permits exemptions for companies willing to make substantial financial contributions through representative organizations, eliminating the need for individual bargaining with each news outlet. Google applied for such an exemption in June 2024, proposing its commitment to contribute $100 million annually to the Canadian Journalism Collective (CJC), a consortium that will distribute the funds to news organizations across Canada.
The CRTC’s approval grants Google a five-year exemption, formalizing its obligation to financially support Canadian news media through the CJC, with contributions expected to begin within 60 days of the decision.
The CRTC launched a public consultation period shortly after Google’s application to gather insights and opinions from stakeholders, including news organizations, industry experts, and the Canadian public. In its statement, the CRTC underscored the importance of this consultative process, noting that Google’s commitment to a transparent funding framework was a central factor in the decision.
The CRTC’s approval is accompanied by clear guidelines for accountability: the CJC will provide annual reports to the CRTC detailing fund distribution, ensuring that resources reach eligible Canadian news outlets equitably, from large media conglomerates to smaller, independent newsrooms.
This funding model is seen as a critical step in revitalizing the Canadian news industry, which has faced sustained financial pressures due to the dominance of tech companies in the digital advertising market. According to the federal government, Google and Meta accounted for as much as 80% of Canada’s digital ad revenue in 2022, leaving limited resources available for traditional media companies.
As a result, many news organizations have struggled to keep up with operational costs, while the public’s access to credible, reliable news has been impacted. The Canadian Journalism Collective, which will distribute the $100 million contribution, represents an industry-wide effort to stabilize journalism in Canada. It is anticipated that by directly funding a broad range of outlets, the CJC will not only support diversity in Canadian journalism but also help mitigate the risks of media monopolization, which often leads to homogenized news coverage and diminished local perspectives.
Canada’s Online News Act and the CRTC’s recent decision to approve Google’s exemption align with broader global efforts to regulate the influence of tech giants on local news media. In 2021, Australia passed a similar measure, the News Media Bargaining Code, which requires digital platforms to negotiate payments with news organizations for the use of their content. Meta initially resisted the Australian law, temporarily blocking news content from Facebook in Australia before eventually reaching agreements with several Australian media companies.
When Canada introduced Bill C-18, Meta adopted a similar stance by blocking Canadian news on its platforms, claiming that the financial burden of compliance was too high. Google, however, chose a collaborative approach, negotiating with Canadian authorities and ultimately agreeing to the $100 million commitment. Industry analysts suggest that Google’s decision to cooperate with the Canadian government could serve as a model for tech companies in other countries as governments continue to explore strategies for addressing digital media’s impact on traditional news outlets.
The CRTC, as part of its regulatory oversight, has stipulated conditions to ensure transparency and accountability within this funding structure. Should Google fail to meet its financial commitments, the CRTC reserves the right to revoke the exemption, which would require Google to engage in individual bargaining with Canadian news outlets. By holding the CJC accountable through annual reporting and rigorous oversight, the CRTC aims to ensure that funds are distributed fairly and serve to address the systemic challenges facing Canadian journalism.
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