Canada’s Bill C-18, also known as the Online News Act, has been passed into law. It requires tech companies like Google and Meta to reach compensation agreements with Canadian news organizations if they want to display links to Canadian news content. However, both Google and Meta have rejected this framework and instead plan to block Canadian news content. So, what does this mean for Canadians?
Bill C-18 aims to establish a bargaining framework that allows news businesses to receive fair compensation when their content is shared by dominant digital news intermediaries, leading to economic gain. It seeks to support balanced negotiations between these intermediaries and the news outlets responsible for producing the content.
This bill obligates tech companies to compensate Canadian news organizations when their content is featured on their platforms. The government believes that this legislation will benefit the Canadian news industry, which has been experiencing declining subscriptions and ad revenue as profits shift to Google and Facebook.
According to a recent Angus Reid report, 85% of Canadians do not pay for online news subscriptions, with many relying on social media platforms like Facebook and Reddit for their news. The Parliamentary Budget Officer estimates that the bill could result in a $329 million shift to the Canadian news industry.
Bill C-18 became law in June 2022 and is expected to take effect within the next six months. In response, both Google and Meta have announced plans to remove links to Canadian news from their platforms. Google has called the bill a “link tax” and argued that it disrupts the traditional functioning of the web and search engines. Once the law comes into effect, links to Canadian news platforms will not be shared on Google, Facebook, or Instagram.
It’s important to note that Canadians will still be able to access Canadian news sources by visiting their websites directly or downloading their apps. Google recommends that users sign up for newsletters or subscriptions to stay updated with news directly from their preferred sources. While links to Canadian news may not appear in search results, users will still have access to news from international sources.
Tech giants are currently conducting tests to determine how they can effectively block news content as a result of Bill C-18. Google is limiting news access to a small percentage of Canadian users for testing purposes. Meanwhile, Meta plans to end news availability on their sites for all users in Canada before the law takes effect.
The exact impact of the law on news organizations is not entirely clear yet. Bill C-18 defines eligible news businesses as those producing news content of public interest, employing two or more journalists in Canada, operating in Canada, and adhering to recognized journalistic associations’ code of ethics. It suggests that lifestyle magazines and similar publications may not be affected by the blocks.
While some may be concerned about losing access to Canadian news on Google and Facebook, Canadians can still navigate directly to their preferred news sources’ websites to stay informed. They can also access news from international sources through Google.
In terms of public opinion, supporters of the bill argue that it helps counteract the dominant position of tech giants and ensures fair compensation for journalists. However, critics worry that blocking news links may lead to a decline in media literacy, making it harder to distinguish between fact and fiction. They suggest that news outlets should do more to promote their own platforms.