# **This is Small Change for Google: An In-Depth Look at the Online News Act and Its Effects**
In a notable advancement for the Canadian journalism sector, the Canadian Radio-television and Telecommunications Commission (CRTC) has granted Google a five-year exemption under the nation’s Online News Act. As part of this arrangement, Google will provide CAD 100 million each year to the Canadian Journalism Collective (CJC), a nonprofit entity tasked with allocating these funds to news organizations affected by Google’s utilization of their content. Even though this might appear to be a considerable figure, for a technology behemoth like Google, this sum amounts to little more than loose change.
## **The Online News Act: What Is It?**
The Online News Act, enacted by the Canadian government, aims to tackle the escalating concern that firms such as Google and Meta (previously Facebook) are generating profits from news content without providing adequate compensation to its creators. When individuals search for news articles or encounter snippets of news in their feeds, these tech companies profit from the engagement and advertising income generated by this content, while news outlets grapple with diminishing profitability.
The Act requires that companies like Google and Meta engage in negotiations for fair compensation with news organizations for utilizing their content. The objective is to ensure that news outlets—many of which are facing financial difficulties—receive a proper share of the revenue produced from their content being showcased on these platforms.
## **Google’s Agreement with the CRTC**
As part of its exemption from the Online News Act, Google has consented to disburse CAD 100 million annually to the Canadian Journalism Collective (CJC). This federally incorporated nonprofit will manage the distribution of these funds to news organizations impacted by Google’s use of their material. The CRTC has also mandated that additional news outlets be permitted to join the CJC for eligibility for these funds.
For Google, this financial commitment is a mere trifle. With annual earnings soaring into the hundreds of billions of dollars, CAD 100 million (around USD 73 million) is negligible. In fact, Google can generate that amount within just a few hours. This prompts the inquiry: Is this payment sufficient to genuinely support Canada’s struggling news sector?
## **The Global Context: Similar Laws in Other Countries**
Canada is not singular in its initiative to regulate the interaction between tech conglomerates and news organizations. Other nations, such as Australia, have enacted comparable legislation, compelling companies like Google and Meta to remunerate news outlets for the use of their content. In 2021, Australia introduced the News Media Bargaining Code, which compelled tech companies to engage in direct negotiations with news organizations or face government intervention.
Within Europe, the European Union’s Copyright Directive also seeks to safeguard the rights of content creators, including news organizations, by mandating platforms like Google to compensate for the use of their material. These regulations illustrate an increasing global trend of governments intervening to protect their domestic news sectors from the overwhelming influence of tech giants.
## **The Debate: Is the Online News Act Effective?**
While the Online News Act is crafted to bolster Canada’s news sector, it has ignited discussions regarding the genuine effectiveness of such legislation. Some assert that being featured by a company like Google is a net gain for news organizations, even if only a fraction of their content is used in a snippet or summary. As long as Google provides a link back to the original source, readers seeking more than just the headline are likely to click through to the complete article, driving traffic to the news organization’s website.
Critics of the legislation also argue that CAD 100 million may not be adequate to sustain Canada’s news industry. The media landscape is experiencing profound changes, with traditional news outlets struggling to compete with digital entities and social media. While Google’s financial contributions may provide temporary relief, they might not sufficiently tackle the fundamental issues confronting the industry.
Furthermore, some contend that laws like the Online News Act create unnecessary bureaucratic hurdles. Instead of a standardized approach, critics argue that individual news organizations should engage in direct negotiations with tech companies like Google. This would enable smaller outlets to secure agreements commensurate with the value of their content, while larger organizations like The New York Times or The Washington Post could negotiate for greater compensation.
## **The Role of Government in Supporting News Organizations**
At the core of the discussion lies the question of the government’s responsibility in supporting the news sector. Advocates for the Online News Act argue that it is the government’s duty to protect local news organizations from being exploited by tech giants. In an age where misinformation and disinformation are widespread, a robust and dynamic news sector is vitally important for democracy.
The CRTC, as a governmental body, is responsible for ensuring that news organizations are treated justly. By mandating that companies like Google compensate news outlets for their content usage, the CRTC aims to create a more equitable landscape and ensure that news organizations have the necessary resources to continue delivering quality journalism.
However, some believe that government intervention in the news
