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 will be required to compensate news outlets. More specifically, the platform will be 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.
If Google or Meta has an agreement in place with Canadian news outlets then they may be exempt from the Act. But 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 and Meta are not happy with the legislation that the Canadian government has passed. They feel there are structural issues that need to be resolved, such as forced payment for links and uncapped liability.
According to Google, they have continually told the government that this approach is not the right way to support Canadian journalism. Over the past year, they have attempted to make amendments and have tried to offer feedback and alternative solutions based on their experiences and successful collaborations in other countries. However, the legislation moved forward without change and was passed in June 2023.
In response to Bill C-18, Google and Meta have told the government that they’ll remove Canadian news from their platforms when the law takes effect.
This means that Canadian news will not appear in any Google products or services including: Google Search, News or Discover. Google will also be unable to continue offering Google News Showcase in Canada, which includes agreements with 150+ news outlets in Canada.
For Canadian Facebook and Instagram users, this means you won’t be able to see or share news links.
This means it will be harder for Canadians to access local news online whether it’s from a qualified Canadian journalism organization or a radio station.
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Can We Expect To See Any Further Changes?
While Bill C-18 has passed, the government of Canada has said that the law won’t apply until they have implementation regulations in place. This process should take a few months, at the end of which, the bill should be in full effect.
Google has said that they’re still willing to work with the Canadian government to further support Canadian journalism. They plan to participate in the regulatory process and will continue to be transparent with Canadians and publishers as everything moves forward. That being said, Google is concerned about whether the regulatory process will resolve its ongoing issues with Bill C-18.
Meta, however, has said that there is “no way to negotiate out of the framework of this bill.”
This current trajectory also means that any current deals that Meta and Google have with Canadian news outlets are at risk.
If Google and Meta move forward with removing Canadian news, Heritage Minister Pablo Rodriguez has said the government will make sure newsrooms have the resources they need to continue their work, though he did not specify how they would do that.
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As more details come out, this story will be updated.
