The Online News Act bill aims to compel tech giants like Facebook and Google, which dominate the online advertising market, to contribute to the sustainability of Canada’s news sector
The Liberal government introduced legislation Tuesday requiring major tech giants, such as Facebook and Google, to compensate Canadian media outlets for the news content that appears on the global platforms.
There is a significant amount of money at stake. Online advertising revenues reached $9.7-billion in 2020, with Google and Facebook earning more than 80 per cent of that amount. Facebook and Google have already signed partnerships with some news organizations, including The Globe and Mail, to pay for the rights to use their news articles. Like any privately-negotiated deal, the agreements could exempt the digital platforms from mandatory CRTC-led bargaining.
The proposed Canadian rules differ from those in Australia, where the finance minister has the final say on which digital platforms will be required to negotiate with news outlets. Speaking on a panel last month, Mr. Rodriguez said that his government’s bill will instead give that role to a regulator, to ensure that a politician does not have control over that part of the process.
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