• by Laurie Sullivan  @lauriesullivan, January 3, 2025

Google has sent $100 million (U.S. $69 million) it agreed to pay Canadian news outlets in exchange for an exemption from the Online News Act to a journalism organization designed to distribute funds.

The company said on Friday it transferred the money to the Canadian Journalism Collective, a federally incorporated non-profit organization led by independent publishers and broadcasters.

Keeping Google accessible to Canadian publishers not only supports journalism, but helps drive ad revenue and traffic to websites.

Announced in June, the agreement between Google and the collective allowed the company to continue making news accessible to Canadians through News and other products.

Google called it a “significant evolution” in how it supports journalism and news in Canada.

Paul Deegan, president of News Media Canada, an organization of major publishers and broadcasters, told the Associated Press called the deal "far superior" than other jurisdiction arrangements, with Canadian news groups expected to get up to Can$20,000 per journalist.

“Google cash in the kitty is a welcome development,” Deegan told the Toronto Star in an email Friday.

The collective estimated eligible publishers will receive $13,798 per full-time equivalent journalist it employs based on a 2,000-hour year. Broadcasters will receive $6,806 per eligible worker.

An accounting firm will develop a verification process and internal controls.

The Canadian act aims to support local news that has seen declining advertising dollars and hundreds of publications closed in the last decade, according to multiple media reports.

Meta's Facebook and Instagram blocked news content in Canada to avoid having to compensate media companies, whereas Google decided to make the payments.