Close X
Thursday, November 28, 2024
ADVT 
National

Online News Act could see Google, Meta pay combined $230 million to Canadian media

Darpan News Desk The Canadian Press, 01 Sep, 2023 09:44 AM
  • Online News Act could see Google, Meta pay combined $230 million to Canadian media

The federal government has put a price tag on how much it would like to see Google and Facebook spend under an act requiring the tech giants to compensate media for news articles.

Federal officials estimate Google would need to offer $172 million and Facebook $62 million in annual compensation to satisfy criteria they're proposing be used to give exemptions under the Online News Act, a bill passed over the summer that will force tech companies to broker deals with media companies whose work they link to or repurpose.

Draft regulations released by the government Friday outlined for the first time how it proposes to level the playing field between Big Tech and Canada's journalism sector, and which companies it will apply to.

The government said companies will fall under the act if they have a total global revenue of $1 billion or more in a calendar year, "operate in a search engine or social media market distributing and providing access to news content in Canada" and have 20 million or more Canadian average monthly unique visitors or average monthly active users.

For now, Google and Meta's Facebook are the only companies to meet the criteria, though officials say Microsoft's Bing search engine is the next closest to falling under the act.

Companies meeting the criteria can receive an exemption from the act if they already contribute an amount laid out by a government formula to Canadian journalism . 

The formula is based on the tech company's global revenues and Canada's share of their global GDP. The government believes the calculation will deliver a contribution that is within 20 per cent of the earnings of full-time journalists working in a Canadian news organization.

Companies would be able to satisfy the criteria with both monetary and non-monetary compensation. While the draft does not specify what non-monetary contributions would count, officials said training and advertising could wind up meeting criteria.

The draft regulations will be subject to further consultation, but Facebook and Instagram parent company Meta, which blocked news on its platforms in anticipation of the act coming into effect at the end of the year, immediately expressed its disappointment with the proposal.

The draft is based around a "fundamentally flawed premise," said Rachel Curran, head of public policy at Meta Canada.

"As the legislation is based on the incorrect assertion that Meta benefits unfairly from the news content shared on our platforms, today’s proposed regulations will not impact our business decision to end news availability in Canada," she said in a statement.

The government said it is pushing forward with the act because Google and Meta have a combined 80-per-cent share of the $14 billion in online ad revenues seen in the country in 2022.

At the same time, news outlets have seen their advertising revenues shrink, forcing layoffs, a loss of media coverage in small and rural communities and 474 closures of Canadian news businesses between 2008 and 2023.

The government says 69 per cent of Canadians access news online but only 11 per cent pay for it.

MORE National ARTICLES

Street expansion coming for Surrey

Street expansion coming for Surrey
City council in Surrey has awarded a contract for designing the widening of 132nd Street between 72nd Avenue to 80th Avenue. The city says in a news release that the expansion to four lanes aims to improve traffic and safety.

Street expansion coming for Surrey

Shooting in Richmond leaves one dead

Shooting in Richmond leaves one dead
A shooting in Richmond  has left one man dead, and police are investigating whether a nearby car fire is related to the case. Richmond RCMP were called to Milner Road at Blundell Road at 5:45 p.m. Thursday for reports of a shooting.  

Shooting in Richmond leaves one dead

3 arrested in Surrey SkyTrain attack

3 arrested in Surrey SkyTrain attack
Surrey transit police say the investigation of an attack on three men near a Surrey SkyTrain station has led to three arrests. Police say the alleged unprovoked stabbing attack on three men happened the evening of June 21st.  

3 arrested in Surrey SkyTrain attack

Let's make a deal, Canada urges U.S. amid latest 'baseless' softwood lumber duties

Let's make a deal, Canada urges U.S. amid latest 'baseless' softwood lumber duties
International Trade Minister Mary Ng is making the overture after a fresh U.S. Commerce Department review maintained duties on softwood imports from Canada. Ng says the duties, while modestly lower, remain an unfair, baseless and punitive measure that hurts the economy on both sides of the border. 

Let's make a deal, Canada urges U.S. amid latest 'baseless' softwood lumber duties

B.C. police share photos of vehicles possibly being used in alleged abduction of kids

B.C. police share photos of vehicles possibly being used in alleged abduction of kids
Mounties in Surrey say they continue to investigate leads and tips in their search for eight-year-old Aurora Bolton and her 10-year-old brother Joshuah, who were allegedly abducted by their mother Verity Bolton earlier this month. 

B.C. police share photos of vehicles possibly being used in alleged abduction of kids

B.C. RCMP arrest Surrey massage therapist on multiple sex assaults

B.C. RCMP arrest Surrey massage therapist on multiple sex assaults
A massage therapist is facing multiple sexual assault charges for what police in Surrey, B.C., say are allegations that span a 16-year period. RCMP say they first received a report in November 2021 about alleged sexual assaults occurring in 2016 and 2017 involving massage therapist Leonard Krekic.  

B.C. RCMP arrest Surrey massage therapist on multiple sex assaults