A new controversy is unfolding at the Canadian Radio-television and Telecommunications Commission (CRTC) regarding Google’s first annual $100 million payment to Canadian news outlets. This payment, part of an agreement under the Online News Act, is intended to support journalism in the country, but disagreements over how it should be managed are causing significant tension.
The Canadian Journalism Collective, the group responsible for distributing the funds on behalf of Google, has submitted its governance structure plans to the CRTC for approval. If the CRTC is satisfied with these plans, it would grant Google an exemption from the Online News Act, which requires tech companies to negotiate agreements with news publishers. This exemption is a critical step that would allow Google to release the funds to news outlets.
However, several news organizations are raising concerns that the proposed governance plan is incomplete, potentially leading to delays in the disbursement of funds. These outlets argue that waiting for a finalized plan could hinder the much-needed financial support.
In written submissions to the CRTC, some media companies have proposed an alternative solution. They suggest that Google should distribute the funds through an accounting firm while the permanent governance structure is being finalized. This, they believe, would ensure that the money reaches news outlets without unnecessary delays.
“We can’t afford to go back to square one,” stated Corus Entertainment in its submission. Corus, the parent company of Global News, which recently laid off 35 journalists, emphasized the urgency of the situation. The Canadian Association of Broadcasters echoed this sentiment, urging that the funds be disbursed “to qualified recipients as soon as possible.” They further suggested that at the very least, the first round of payments should be made by the end of the year.
The CRTC exemption would allow Google to comply with the legislation by contributing to a single collective bargaining group, effectively serving as a media fund. However, News Media Canada, which represents hundreds of publishers, including the National Post, expressed concerns over the lack of “critical information” regarding the Canadian Journalism Collective’s governance, payment calculations, and fund distribution methods.
While Google has indicated its willingness to make an initial $250,000 payment to establish the organization that will manage the funds, the tech giant insists that full payments to news outlets should not commence until it has received a complete exemption from the Online News Act.
As the CRTC continues to deliberate, the pressure mounts for a resolution that satisfies all parties and ensures timely support for Canadian journalism.
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