Canada has unveiled draft rules for its Online News Act, a law aimed at making tech giants like Google and Meta Platforms pay news outlets for content. The law, which was passed in June and is expected to take effect in December, follows a global trend of holding internet giants accountable for their use of news content. Ottawa claims that the proposed regulations address concerns raised by the companies regarding potential uncapped liability.
Under the draft regulations, both Google and Meta Platforms will be required to negotiate agreements with news publishers in Canada voluntarily. They will also need to pay a portion of their global revenues based on a set calculation. According to a Canadian government official, the proposed rules could generate approximately CAD 172 million (about Rs. 1,050 crore) per year from Google and CAD 60 million (about Rs. 360 crore) per year from Facebook.
Both Google and Meta Platforms have expressed their concerns about the workability of the law for their businesses. Meta has already ceased news sharing on its platforms in Canada, and Google has announced plans to block news from search results in the country before the law comes into effect. These actions highlight the challenges faced by tech companies in complying with the proposed regulations.
If companies fail to meet a specific payments threshold through voluntary deals, they may be required to engage in mandatory bargaining overseen by the Canadian Radio-television and Telecommunications Commission (CRTC). The aim is to ensure fair compensation for news organizations. The CRTC intends to establish a negotiation framework between news organizations and internet giants by early 2025, following the development of a framework in autumn this year.
The draft rules allow for both monetary and non-monetary contributions to news businesses. Pre-existing agreements will also be taken into account. It is crucial that any agreements between Google, Facebook, and news outlets cover not only large publishers but also independent local, Indigenous, and official language minority community news businesses.
The introduction of draft rules for Canada’s Online News Act demonstrates the government’s commitment to ensuring fair compensation for news outlets by making tech giants pay for using their content. While Google and Meta Platforms have raised concerns about the law’s workability, the proposed regulations attempt to address these issues and strike a fair balance. As the draft rules undergo public consultation, it remains to be seen how the law will ultimately impact the relationship between tech companies and news publishers in Canada.
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