Canada has unveiled its draft rules for a law that will require internet giants to pay news outlets. The country is addressing concerns raised by tech companies such as Google and Facebook, who fear they may face unlimited liability. However, Facebook has confirmed that it will stick to its decision to block news in Canada.
The draft rules, which aim to implement the recently-passed Online News Act, have been introduced to alleviate the worries of Google and Meta. Meta Canada’s Head of Public Policy, Rachel Curran, stated that the proposed regulations will not affect their decision to end news availability in Canada due to the fundamentally flawed premise of the Online News Act.
The Online News Act, which is part of a global trend to make internet giants pay for news, became law in June and is slated to take effect in December once the rules are finalized.
This legislation was prompted by concerns raised by Canada’s media industry, which seeks stricter regulation of tech companies to prevent them from dominating the online advertising market and pushing out news businesses. Both Google and Facebook have expressed their belief that the law is unworkable for their businesses, with Meta already ceasing news sharing on its platforms in Canada.
A spokesperson for Google stated that the company is reviewing the proposed regulations to assess whether they address the significant structural issues associated with the law.
According to the draft regulations, companies will need to negotiate deals willingly with news publishers and pay a portion of their global revenues based on a predetermined calculation.
According to a government official, the draft proposals are expected to generate C$172 million ($126.6 million) per year from Google and approximately C$60 million per year from Facebook.
Despite Meta’s decision to block news links in Canada, it has had minimal impact on the usage of Facebook among Canadians, based on data from independent tracking firms. Meta reported revenue of about $117 billion last year, equivalent to around $320 million per day.
If companies do not meet a payments threshold through voluntary deals, they may be required to engage in mandatory bargaining overseen by the Canadian Radio-television and Telecommunications Commission (CRTC).
During a briefing, government officials avoided answering questions about the consequences if companies block news on their platforms and refuse to participate in negotiations altogether. However, they emphasized that the dominant position occupied by these gatekeepers of content entails a responsibility to engage in fair bargaining.
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