Google has finally agreed to pay C$100 million ($73.6 million) yearly to news publishers in Canada, Canadian government officials reported on Wednesday.
Backtracking from its pledge earlier this year, the tech giant will not also block links from Canadian news outlets on its platform over the controversial Online News Act.
Heritage Minister Pascale St-Onge said Canada and Google "have found a path forward" to address core issues within the law.
Kent Walker, Google's president of global affairs, reported that the two are currently working "through the exemption process" for the regulation, including a "clear commitment threshold" to news publishers.
The news came after previous negotiations with Google fell apart. Canada initially required the tech giant to pay C$127 million ($93.4 million) in accordance with the law.
Google and Meta previously threatened to pull links to news content in Canada in response to the law, which goes into effect in three weeks, Dec. 19.
What is the Online News Act?
The Online News Act, which was passed in June, was met with criticism from online platforms when it was first announced.
Aimed to "ensure that dominant platforms compensate news businesses," the law targets digital platforms getting huge advertising revenues generated from news content published on their site.
The Canadian government asserted that tech behemoths like Google and Meta receive roughly 80% of the $14 billion ad profits in 2022.
The new law requires a "minimum threshold" for online spaces to "contribute to the sustainability of the Canadian news marketplace."
Google and Meta Response to Online News Act
Google called the legislation "unworkable" and could affect the availability of news content on the search engine's platform in Canada.
Meta has yet to resume negotiations with Canada after threatening to remove news content on Facebook, Threads, and Instagram from its Canadian users.
Canada's new law follows after Australia passed a similar regulation in 2021.
The government later amended the law to allow Google and Facebook to strike deals with publishers rather than a standard fee.
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