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Approval of Bill "C-18" on the Online Distribution of Canadian News

Approval of Bill "C-18" on the Online Distribution of Canadian News

By Mounira Magdy

Published: July 21, 2023

The Canadian bill "C-18" has been passed into law, requiring technology companies to negotiate compensation deals with news organizations if they wish to host links to Canadian news content, a framework that both "Google and Meta" have rejected, stating that they will ban Canadian news content.

This bill means that Canadians may not see local news in the places they usually check online, such as social media and Google, and they will have to look elsewhere to stay informed about the banned content.

Bill C-18, or the Online News Act, establishes a framework requiring digital giants like Meta and Google to negotiate deals with Canadian news sites to preview and share their news content online.

The bill provides a new negotiating framework aimed at supporting news companies to secure fair compensation when their news content is provided by dominant digital news intermediaries and generates economic gains, according to an explanatory note from the government.

The government stated, "It seeks to support balanced negotiations between companies that operate dominant digital news intermediaries and the companies responsible for news outlets that produce this news content."

The bill requires technology companies to compensate Canadian news organizations when their content appears on their platforms, and the federal government says the bill aims to help the Canadian news industry, which has seen a decline in subscriptions and advertising revenues as these profits have shifted to Google and Facebook.

According to a report by Angus Reid released earlier this month, 85% of Canadians do not pay for any online news subscription, and Canadians under 64 typically check social media sites like Facebook first for their news.

According to the parliamentary budget officer, who provides economic and financial analysis for the government as an independent agency, the bill will funnel approximately $329 million to the Canadian news industry.

The bill became law in June 2023, and the effective date is not yet clear; however, it is expected to take effect in the next six months.

Both Google and Meta, responsible for Facebook and Instagram, announced that they will remove Canadian news links from their platforms in response to the law before the end of this year.

Meanwhile, Google described the bill as a "link tax," stating that it breaks the way the web and search engines have operated for more than 30 years.

Therefore, Canadian news links will not be shared on Google, Facebook, or Instagram when the law comes into effect.

According to a statement from Google on June 29, Canadian news links will be removed from search engines and news, and the company noted that this will not apply to its alerts, which connect Google users to the most relevant safety information in case of a crisis like a wildfire, flood, or earthquake.

Meta mentioned in an update published on June 22 that news availability will end on its sites for all users in Canada before the Online News Act comes into effect.

Many people head straight to Google when they want to know what's happening in the world, but Google search is not the most direct way to find your news.

Canadians will still be able to access Canadian news sources by directly navigating to their websites.

Google itself also recommends Canadians visit their favorite news outlets' websites directly, or download their apps and subscribe to newsletters or subscriptions so they can stay informed about the latest news directly from the sources most important to them, and Canadians will also be able to see news from international news sources through Google.

To find out if news links have been blocked for you, just go to the Google search engine and type in search terms related to Canada, such as Ottawa or Trudeau, then click on the news tab in Google; if most news sources from the United States appear, you are likely among the users for whom links to Canadian news outlets do not appear.

Proponents of the Liberal government's bill say it is a way to keep tech giants in check and reduce their digital dominance, and that journalists should be compensated for their work that is used to help tech giants attract more eyes and thus more advertising revenue.

Canadian Heritage Minister Pablo Rodriguez stated in late June that tech companies have become too powerful, saying, "About 500 newsrooms have closed their doors across the country, and they will continue to shut down; the status quo isn’t working because the money will go to tech giants."

Last year, Meta made profits of over $23 billion, while Alphabet, Google's parent company, made nearly $60 billion.

A recent survey conducted by the Angus Reid Institute indicated that 82% of Canadians agree that "too few tech companies have way too much power over the internet."

However, 63% are concerned about losing access to Canadian news on Google and Facebook, while some critics worry that Google's and Meta's ban on news links from Canadian news sources could lead to a decline in media literacy.

Cybersecurity and technology expert Ritesh Kotak told CTV News in late June that the removal of news from Google and Facebook platforms could lead users to rely on unverified stories, making it harder to decipher truth from fiction.

He added, "This is a serious problem for news organizations and also for members of the public," noting that news outlets need to put more effort into promoting their own platforms.

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