Google has been granted a five-year exemption from Canada's Online News Act, but it must pay $1 billion to Canadian news organizations within 60 days. The Canadian Radio-television and Telecommunications Commission (CRTC) made the decision, citing Google's agreement to pay the penalty and its trust of the News Media Alliance, which will distribute the funds to news outlets.
Last year, Google agreed to pay $1 billion as part of a deal with the Canadian government to settle a legal dispute over the Online News Act. The law aims to promote competition and fairness in the Canadian digital advertising market.
As part of the agreement, Google appointed the News Media Alliance to distribute the funds to Canadian news organizations. The CRTC deemed this arrangement sufficient to ensure that the funds are distributed fairly and transparently.
The exemption from the Online News Act will allow Google to avoid compliance with the law's requirements, including the provision of detailed data on its advertising sales and the use of its platform to promote Canadian news content.
However, the CRTC's decision has drawn criticism from some who argue that Google's exemption is unfair and inadequate. They point out that other tech giants, such as Facebook and Apple, have not received similar exemptions and are subject to the law's requirements.
The issue is politically charged in Canada, with the government facing pressure to take a tougher stance on the tech giants' dominance of the digital advertising market.
In a statement, the CRTC said it had carefully considered Google's application and had determined that the exemption was in the public interest. The agency emphasized that the exemption was not a license to abuse market power, but rather a recognition of Google's commitments to competitiveness and fairness.
The decision has significant implications for Canadian news organizations, which have been struggling financially in recent years. The $1 billion payment will provide a much-needed boost to the sector, but the long-term impact of the Online News Act will depend on how effectively it promotes competition and innovation in the digital advertising market.