Canadian legislation aimed at getting U.S. digital tech giants to compensate local publishers for news content shared or repurposed on their platforms has been passed into law. The bill, known as the Online News Act or Bill C-18, has not yet persuaded Meta and Google to negotiate commercial licensing deals with Canadian publishers for their platforms. Instead, Meta has announced that Canadians will be blocked from viewing or sharing news on its Facebook and Instagram sites. Google has also hinted at the possibility of blocking news content in Canada. This standoff between the Canadian government and Silicon Valley tech giants has hindered efforts to ensure fair compensation for news publishers.
In response to passing Bill C-18, Meta, a division of Facebook, stated that content from news outlets will no longer be accessible to Canadian users on its platforms, in compliance with the new legislation. Similarly, Google conducted a test in which it temporarily blocked news content for certain Canadian audiences. These actions by Meta and Google have frustrated the federal government’s attempts to encourage revenue sharing with news publishers.
Canadian Heritage Minister Pablo Rodriguez emphasized the importance of a free and independent press in a democratic society. He stated that a fair compensation regime allows news businesses, regardless of size, to benefit and ensures that big tech companies are held accountable. The passage of Bill C-18 is part of Canada’s broader efforts to revamp its media regulatory regime, responding to the pressure faced by local broadcasters and news publishers due to competition from foreign online platforms.
In addition to the Online News Act, Canada has recently enacted the Online Streaming Act, also known as Bill C-11. This legislation requires digital platforms like Netflix, Disney+, and Spotify to contribute to the funding of local content for the first time. The implementation of the Online Streaming Act aims to address the dominance of foreign streaming giants and ensure investment in local film and TV production.
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The Canadian Radio-television and Telecommunications Commission (CRTC) will oversee the Online News Act and the negotiations between U.S. digital platforms and Canadian news publishers. This includes the possibility of final-offer arbitration to resolve disputes. The CRTC will also be responsible for developing a framework that ensures foreign streaming giants contribute to local content and determining the extent of their financial obligations.
The passage of Bill C-18 follows similar legislation in Australia, where Meta initially blocked news content before establishing a fund to compensate local publishers. This highlights the global trend of governments seeking to regulate and address the impact of digital tech giants on traditional media industries.
The next phase will involve further lobbying in Ottawa as the CRTC works towards establishing regulations for the Online News Act and negotiating fair compensation for Canadian publishers. The outcome of these negotiations will determine how U.S. digital platforms operate and support the local news industry in Canada.
