Canada has recently released draft rules for the Online News Act, a law aimed at compelling technology giants such as Google and Meta Platforms (formerly Facebook) to pay news outlets for their content. This follows a global trend of holding internet giants accountable for their impact on the news industry. While the law was passed in June and is set to take effect in December, companies like Google and Meta have expressed concerns about the potential unlimited liability they may face. The Canadian government hopes that the draft regulations will address these concerns and create a fair system for news publishers to benefit from these platforms.
Under the proposed regulations, Google and Meta Platforms will be required to engage in voluntary negotiations with news publishers in Canada. They will also have to pay a portion of their global revenues to these publishers based on a predetermined calculation. The draft rules estimate that Google could contribute approximately CAD 172 million per year, while Facebook could contribute about CAD 60 million per year. These figures are a substantial amount that could significantly support Canadian news organizations.
Both Google and Meta have expressed concerns over the viability of the law for their businesses. In response, Meta has already discontinued news sharing on its platforms in Canada, while Google plans to exclude news content from search results before the law comes into effect. These actions highlight the potential impact the law could have on these technology giants and their operations in Canada.
Should the companies fail to meet the payments threshold through voluntary agreements, they may be subjected to mandatory bargaining overseen by the Canadian Radio-television and Telecommunications Commission (CRTC). The CRTC plans to establish a negotiation framework between news organizations and internet giants, with the goal of initiating mandatory bargaining by early 2025. This regulatory oversight aims to ensure fair and equitable negotiations between the parties involved.
The draft regulations emphasize the importance of inclusive agreements between Google, Facebook, and news publishers. These agreements should cover not only established news organizations but also independent local, Indigenous, and official language minority community news businesses. By including a diverse range of news outlets, the Canadian government aims to promote a vibrant and inclusive news ecosystem that benefits all Canadians.
The release of the draft rules for the Online News Act in Canada marks a significant step in holding technology giants accountable for their impact on the news industry. While Google and Meta have raised concerns about the practicality of the law, the Canadian government is committed to addressing these concerns through voluntary negotiations and regulatory oversight. By ensuring fair compensation for news publishers, Canada aims to create a sustainable and diverse media landscape that benefits all stakeholders involved. As the public consultation on the draft regulations takes place, it will be crucial to strike a balance between the interests of technology giants and the need to support the journalism industry.
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