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01 February 2025

Delayed Google Payments Leave Canadian News Outlets Waiting

Canadian journalism organizations brace for funding delays as eligibility verification continues.

Canadian journalism organizations are facing delays in receiving their promised share of the $100 million Google agreed to pay news outlets to comply with the Online News Act. The organization managing the distribution of these funds has announced it will take longer than initially anticipated for payments to flow to news outlets, pushing the timeline back from January.

The Canadian Journalism Collective (CJC) notified outlets via email late Thursday, indicating they should expect to be informed about their eligibility for this funding between mid-February and mid-March. Once eligible, initial payments will be processed two weeks after the collective receives signed agreements and banking information from the respective news organizations.

Laura Dunn, a coordinator with the CJC, explained the revised timeline is due to requests from news businesses for more time to review the agreements they must sign to receive the funds. "We’ve also heard loud and clear they want us to balance speed with thorough implementation, especially concerning eligibility verification," she conveyed through the email.

The payments are part of the federal legislation known as the Online News Act, aimed at creating equitable compensation structures for news outlets by extracting payments from large tech companies. This legislation targets companies with annual global revenues exceeding $1 billion and significant Canadian user bases—specifically, at least 20 million unique visitors or average monthly active users.

Among the companies affected, Google and Meta (the owner of Facebook and Instagram) are the only ones currently meeting these criteria. Google effectively secured a five-year exemption from the act by agreeing to pay $100 million annually to media organizations, whereas Meta has managed to avoid making payments by blocking access to Canadian news on its platforms.

The payments, once activated, are reportedly incremental. Outlets will first receive partial amounts to prevent overpayment before the CJC can verify employee hours. Dunn noted, "To avoid overpaying news businesses before the collective has verified the number of employee hours," initial distributions will not represent the full funds owed.

Verification for these claims will take place between May and August, during which consulting and accounting firms engaged by CJC will assess the claims made by eligible news businesses. Dunn elaborated, saying, "If organizations are deemed ineligible, their hours will be removed from the pool of funds, thereby increasing payment to those who are eligible." The preliminary estimates suggested publishers might receive approximately $13,798 per full-time equivalent journalist based on the 2,000-hour work year. Broadcasters, on the other hand, are expected to receive around $6,806 per eligible employee.

This breakdown translates to payments of about $6.90 per hour for publishers and $3.40 per hour for broadcasters, with potential total estimations climbing to between $18,000 and $20,000 per journalist once the eligibility dust has settled.

Eligibility for these funds under the Online News Act requires outlets to engage primarily with news of general interest or current events—this does not extend to establishments solely focused on niche topics like sports or arts. Qualifying organizations must operate within Canada, employ at least two journalists, and belong to recognized journalistic associations or adhere to established ethical codes ensuring fair and rigorous reporting standards.

Following the distribution of the initial and final payments, the CJC intends to hold aside funds for outlets disputing their eligibility or the hours claimed. Paul Deegan, president of News Media Canada, emphasized the importance of transparency, stating, "We believe the CJC should publicize their determination of eligible news businesses prior to distribution." He believes the updated timeline offers ample opportunity for the collective to achieve this.

The CJC previously announced on January 31, 2025, the money from Google had been transferred, signaling readiness to distribute the funds once preliminary contracts were finalized with eligible outlets. This revision of payment schedules has palpable impacts on financial stability within the Canadian journalism sector as stakeholders brace for varying outcomes depending on eligibility decisions.

Deegan reinforced the expectation for clarity from the CJC, noting, "The updated timeline should give the CJC more than enough time to accomplish this." With disputes anticipated as organizations navigate the new legislation's stringent requirements, clarity and expedience remain at the forefront of what many hope will stimulate recovery within the journalism industry.