Canada and Google reach C$100 million deal to keep news in search results

OTTAWA, Nov 29 (Reuters) – Canada and Google have reached an agreement to keep news stories in search results and for the internet giant to pay C$100 million annually to news publishers in the country, Canada’s culture minister said on Wednesday.

The deal eases Alphabet-owned Google’s (GOOGL.O) concerns about Canada’s online news law, which aims to force major internet companies to share advertising revenue with news publishers in the country.

“After weeks of productive discussions, I am pleased to announce that, together with Google, we have found a path to implement the Online News Act,” Culture Minister Pascale St-Onge said in a statement.

The Online News Act, part of a global trend to make internet giants pay for news, was passed by the Canadian Parliament in June and the government is finalizing rules that are expected to be published by December 19.

Google announced that it would block messages on its platform. It said Canadian law is stricter than that in Europe and Australia and raised concerns that the company may face unlimited liability.

Last month, a Canadian news outlet supported some of Google’s concerns about the new law.

Meta Platforms (META.O), the other internet giant targeted by the law, has already blocked news sharing on Facebook and Instagram due to its concerns about the law.

Canadian Broadcasting Corp previously reported the deal.

($1 = 1.3593 Canadian dollars)

Our standards: The Thomson Reuters Trust Principles.