Google has announced a deal with the Canadian Journalism Collective (CJC) to distribute $100 million annually to news organizations across the country. This move comes as a direct response to the Online News Act (Bill C-18). Bill C-18 threatened hefty fines on tech giants for failing to compensate news publishers for using their content.
The CJC, a newly formed non-profit organization, will oversee the allocation of funds to eligible news outlets. The steering committee is comprised of representatives from various media sectors, including French-language, community, Indigenous, and Black and minority publications. The committee will ensure fair and transparent distribution.
A Lifeline for Canadian Journalism
This is a significant investment in Canadian journalism, two-thirds of the fund earmarked for print and digital media outlets. This injection of funds is expected to be a lifeline for struggling newsrooms, particularly smaller and independent organizations.
Distribution Criteria and Timelines
The CJC will review applications from over 1,500 news organizations that responded to Google’s open call for funding. To qualify, outlets must be designated as qualified Canadian journalism organizations under the Income Tax Act, produce news content of public interest, operate in Canada, and employ at least two journalists.
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The distribution will be proportional to the number of full-time journalists employed by each organization. Small outlets are expected to receive around $17,000 per journalist. While the exact timeline for disbursement remains unclear, Google hopes the process will be expedited, allowing Canadian newsrooms to receive funds as soon as possible.
Canadian government was pushing for fairer compensation for news organizations from tech giants. The deal comes just weeks before Bill C-18 was to come into effect, a similar news-blocking scenario as seen in Australia.
With Google’s agreement to pay into the fund, the tech giant has secured an exemption from the Online News Act. The CJC will now work to establish its governance structure and begin the process of distributing the funds.
