Google and the federal government have reached an agreement in their dispute over the Online News Act, sources tell Radio-Canada and CBC News.

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The federal government had estimated earlier this year that Google’s compensation should amount to about $172 million.

“Having taken this first step with Google is important,” said the source, who asked to remain anonymous because they were not authorized to speak publicly.

The company said it would not have a mandatory negotiation model imposed on it for talks with Canadian media organizations, preferring to deal with a single point of contact.

Faced with Google’s threat to stop distributing Canadian news, the government seems to have softened its position.

But the government source argues that an agreement constitutes a victory and a net gain for Canadian media.

Bill C-18 applies to digital platforms with 20 million unique monthly users and annual revenues of $1 billion.


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