The new regulatory regime would require companies such as Google and Facebook owned by Meta Platforms — and other major online platforms that reproduce or facilitate access to news content — to either pay or go through a binding arbitration process under the guidance of a regulatory authority. the Canadian Broadcasting and Telecommunications Commission (CRTC). The compensation generated by these digital giants should be used extensively to fund the creation of news content to protect the “viability of the Canadian news ecosystem,” according to a government background distributed to reporters. The government is proposing the deal as a way to support an industry that has seen a steady decline since the advent of the Internet. According to government figures, more than 450 news outlets in Canada have closed since 2008. News companies are struggling to make money from their content after losing significant revenue streams, such as classified ads and print subscriptions. In an age of cable cutting, some private and public service broadcasters have also found it difficult to make money from their radio waves and pay for local, regional, and national radio and television news. The dominance of advertising once enjoyed by the old-fashioned media is over. Google and Facebook have a combined 80 percent share of all online advertising revenue in Canada, earning a staggering $ 9.7 billion a year, according to government figures.
“Desert News”
The loss of advertising revenue has overturned previous media business models. Thousands of Canadian journalists have lost their jobs and some communities have become “news deserts” – without access to newspapers, digital news sites, television or radio programs. Cultural Heritage Minister Pablo Rodriguez said Canada’s news companies should be compensated for helping Google and Facebook attract the eye. “The news sector is in crisis,” Rodriguez told a news conference on Tuesday. “Traditionally, advertising has been a major source of revenue for news companies. This is happening less and less. I would say the reality is bleak.” “Google and Facebook use news content on their sites” without really having to pay for it. With this account, we’re trying to tackle this market imbalance, “Rodriguez said. “The media and journalists should be paid fairly for their work. It should not be free.” ATTENTION: The Minister of Cultural Heritage Pablo Rodriguez presents a bill for the compensation of news agencies
Canadian Minister of Cultural Heritage outlines bill to oblige internet giants to compensate news media
Canadian Heritage Minister Pablo Rodriguez says the Liberal government is introducing legislation to force digital giants to compensate news publishers for using their content. 2:29
To maintain access to Canadian news, the federal government has adopted much of the so-called “Australian model”, named after the country that first forced digital companies to pay for news content.
According to the Australian Competition and Consumer Commission, more than $ 190 million has already been paid to Australian media companies since the model came into force last year. The big winners were the legacy media and the bigger media.
Under the legislation that will be introduced this week, digital media giants such as Facebook will have to compensate the media for using their product – either through negotiation or arbitration. (David Paul Morris / Bloomberg)
The new Canadian system would require Facebook, Google and other digital platforms that have a “negotiating imbalance with news companies” to enter into “fair trade agreements” with newspapers, news magazines, online news companies, private and public broadcasters and broadcasters. non-Canadian news media that meet specific criteria.
The goal is for these digital platforms to negotiate agreements with publishers without the need for government intervention. Rodriguez said the amount of money each news company would receive from these digital giants would be decided by these negotiations – there is no set formula.
In the absence of any voluntary settlement, news companies can initiate a mandatory negotiation process and apply to a CRTC arbitration panel for a binding decision.
Google has retreated to Australia
Google has strongly opposed Australia’s efforts to get it to pay for news – it has even threatened to shut down search engine access in that country if the account goes as planned. Google eventually backed down and cut deals with a number of news outlets to avoid a binding arbitration process. Google claims that its current model is fair to publishers because its search engine directs significant traffic to newsletter websites. In a statement Tuesday, Google said it was “carefully reviewing the legislation to understand its implications.” “We fully support Canada’s access to credible news and look forward to working with the government to strengthen the news industry in Canada,” said Lauren Skelly, Google Canada spokeswoman.
CRTC to decide which stores qualify
A government official said the CRTC – a body that has historically only dealt with broadcasters and telecommunications companies – was chosen to run this new regulatory regime because it has a history of dealing with media companies. A store will be considered an eligible news business if it regularly employs two or more journalists in Canada, operates extensively within Canada, and produces content that is edited and designed in that country. Eligible media should mainly produce news content. A store will not qualify for this system if it commits to “producing content that promotes its interests or mentions the activities of an organization.” The CRTC will make the final decision on whether a particular news outlet is eligible for the program, Rodriguez said. “I do not decide who meets the conditions and who does not,” the minister said. “That would be terrible for our democracy. No, it should not depend on a minister or a government that meets the conditions.”
