News publishers are fighting Big Tech over peanuts. They could be owed billions.

A battle is underway between Big Tech and the free press regarding the sharing of income generated by news content. The Canadian government recently reached a deal with Google that requires the company to pay Canadian news outlets $73.5 million annually, although this falls short of the $126 million Canada initially sought. The settlement serves as a test case for other countries considering legislation to force tech companies to pay for news content. Meta, the owner of Facebook, responded to the Canadian law by blocking Canadians from viewing or sharing news items on Instagram and Facebook. The ongoing blockade has already caused significant damage to Canadian publishers. Critics argue that the private deals struck between tech companies and news outlets could allow tech giants to determine which news outlets survive and starve those critical of their interests. Two years ago, Australia enacted a bargaining code that required Google and Meta to negotiate payments to news publishers. The code resulted in positive outcomes for the news industry, prompting hiring and generating significant payments. Similar efforts in other countries, including Brazil, South Africa, and California, have faced pushback from tech companies. Canada’s draft regulations stipulated that Meta and Google each pay news outlets a minimum of 4% of their annual revenue in the country, but Google argued that only 2% of search queries in Canada seek news. A new study estimated that 35% of searches on Google are seeking news media content, concluding that Google and Meta significantly undervalue the importance of news to their platforms. The study estimated that Google owes U.S. publishers 50% of the value created by news, translating to an annual revenue sharing of $10 billion to $12 billion. The struggle between publishers and Big Tech continues, with publishers potentially owed billions of dollars. The Canadian settlement serves as a starting point, and other governments should pursue similar efforts to ensure fair payment from Big Tech.