The Online News Act: What You Need To Know About Bill C-18

When online news first surfaced, many people went directly to news websites to find out about the latest stories. But as the internet evolved, the way we accessed information changed as well. 

Today, more and more Canadians access their news content through third-party platforms, like social media networks and search engines. 

In theory, having a third party like Google or Facebook display an article in their news feed or search results should benefit news outlets by getting more eyeballs on their content. In fact, Google linked to Canadian news publications more than 3.6 billion times in 2022 alone. 

The problem is, it’s only beneficial for news outlets if readers click the article and get redirected to the news website. This increases the news outlets' traffic and profitability so that they can continue to deliver content that matters.  

But the reality is most people don’t click on the links. 

Instead, they read the title and captions, then continue scrolling through Google and Facebook. That means that Google and Facebook are keeping the readers for themselves, along with the advertising revenue that comes from the increased engagement and views. 

In response to this, the government implemented Bill C-18, also called the Online News Act. The purpose of the Act is to make Canadian news business more sustainable, increase fairness, and improve income at for-profit outlets. 

This Act requires digital intermediaries to compensate Canadian news outlets for sharing their content on feeds and in search engine results. Simply put, if a third-party platform shows a link to a news article in their feed or search results they will have to pay a “link tax.”

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Bill C-18 Targets Google And Meta

Under the Online News Act, only certain third-party platforms are required to compensate news outlets. More specifically, the platform is required to pay if there is a “significant bargaining power imbalance” based on: 

• The size of the intermediary 
• Whether the market gives the intermediary a strategic advantage over news outlets
• Whether the intermediary has a prominent market position 

Without specifically naming them, this act is effectively calling out Google and Meta, which owns Facebook and Instagram. 

Under this new legislation, companies can have an agreement in place with Canadian news outlets, making them exempt from the Act. This is contingent on the agreement satisfying a number of conditions related to fairness and transparency. 

How Google And Meta Are Responding To Bill C-18

Google was initially against the legislation, threatening to pull Canadian media from their channels, however, Google is now working with news organizations to ensure Canadians can access Canadian news through their platform.

Meta, on the other hand, continues to be unhappy with the legislation that the Canadian government passed and continue to block Canadian news on its platform since the ban started in June 2023. This means that Canadians can no longer find or share news from Canadian broadcasters and broadcasters as banned from having accounts on both Facebook and Instagram.

This makes it will be harder for Canadians to access local news online whether it’s from a qualified Canadian journalism organization or a news broadcaster.

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