Online News Act funds to be capped for private broadcasters, CBC: report

The amount of funding that will be provided to Canadian broadcasters will be limited in the government’s $100 million deal with Google.

The cap is set to be enacted for private broadcasters across the country and will be even lower for the publicly-funded CBC.

Exact details on what the figures will be have yet to be released.

A source has confirmed with The Canadian Press the final regulations of the Online News Act, which outline the cap, that are set to be published on Friday.

Last month Google agreed to pay $100 million a year, fixed to inflation, to Canadian news publishers.

READ MORE: Heritage minister to testify on Online News Act after deal struck with Google

It’s a deal that had the Liberal government caving to the tech giant’s demands after they threatened to pull Canadian news links from its search engine.

The monetary contribution will have Google exempt from the legislation that requires tech companies that meet certain criteria to compensate news publishers for linking to their content if it generates revenue.

With the deal struck, the tech giant will alternatively enter into a single collective bargaining group that will serve as a media fund.

A spokesperson for Google says the company believes the legislation is “fundamentally flawed” but remains pleased to have reached “a viable path to exemption in the final regulations.”

This report was created with files from The Canadian Press  

WATCH MORE: Federal government reaches deal with Google over Online News Act