Bill C-18, known as The Online News Act gives the Canadian government the power to force big tech to pay news companies in Canada for the crime of their users sharing news on their platforms. Meta & Google has responded by saying that they will block news access for Canadian. WNews is opposed to Bill C-18.
April 5, 2022: C-18 is introduced in the House of Commons.
April 5, 2022: First Reading completed
May 31, 2022: Second reading and referral to committee
December 9, 2022: Committee report presented with amendments
December 13, 2022: Concurrence at report stage.
Bill C-18 is designed to compensate Canadian news organizations for the use of content on social media. However, the bill may come with some unintended consequences when the new law takes full effect.
If no voluntary arrangement is reached, news businesses can initiate a mandatory bargaining process and go to a Canadian Radio-television and Telecommunications Commission (CRTC) arbitration panel for a binding decision.
The CRTC, which is tasked with overseeing the Online News Act, said it will soon share its plan for implementation and “set up the framework for mandatory bargaining between these parties.”
Meta said it will begin to block news for Canadian users over the next few months and that the change will not be immediate.
“We have repeatedly shared that in order to comply with Bill C-18 … content from news outlets, including news publishers and broadcasters, will no longer be available to people accessing our platforms in Canada,” Meta said in a media statement.
Now that the bill has received royal assent, the Department of Canadian Heritage will draft regulations specifying the application of the act and provide guidance on implementing it. It should take six months for Bill C-18 to come into force.
The federal government introduced Bill C-18 in April 2022 with the goal of forcing digital giants, such as Meta and Google, to compensate news publishers for the use of their content.
It is meant to address the “imbalance” between tech platforms and Canadian news publications, allowing them to make “fair commercial deals” without the need for government intervention, the federal government said.
Rodriguez said the amount of money each publisher receives from these digital giants will be decided by negotiations; there is no preset formula.
Bill C-18 threatens the way that Canadians get the news. Canadians are one of the biggest sharers of news on FB. With Meta now removing news access for Canadians, Canadians will not be able to get the latest news that is happening around them including Breaking News alerts.
The Canadian Constitution has the right to the Freedom of the Press.
Sue Gardner wrote an opinion for McGill saying the bill “is Bad for Journalism and Bad for Canada”
“The stated premise of C-18 is that by making links to news material available on their sites, platforms are taking value from publishers, and so they need to be forced to compensate publishers for that value to “enhance fairness” in the Canadian digital news marketplace.
But that premise makes no sense. We know that because news publishers have always been able to opt out of appearing in Google search results, and they don’t. In fact they do the opposite: they vigorously compete to maximize their presences on Google and on Facebook. News publishers want to appear on those platforms, because that’s where people are finding news. When someone sees a story on Google or Facebook, and clicks on it or shares it, that brings traffic to the publisher’s site, increasing its reach and its revenue. Being on Facebook and Google helps publishers. If it didn’t, they would just opt out.
The real basis for C-18 seems to be slightly different, and rooted in long-standing complaints from newspaper publishers that big internet platforms broke their business model, and should therefore be required to compensate them for their losses. You could call this the ‘you broke it you bought it’ premise.” – https://www.mcgill.ca/maxbellschool/max-policy/c-18
The Big Tech companies like Google support Canadian journalism and by the passage of Bill C-18, Google announced on June 29, 2023, that Google will be removing news access for Canadian as well as terminating the Google News showcase for Canadian publishers.
“We already pay to support Canadian journalism through our programs and partnerships – and we’ve been clear we’re prepared to do more. As part of our Google News Showcase program, we have negotiated agreements covering over 150 news publications across Canada. Last year alone, we linked to Canadian news publications more than 3.6 billion times — at no charge — helping publishers make money through ads and new subscriptions. This referral traffic from links has been valued at $250 million CAD annually. We’re willing to do more; we just can’t do it in a way that breaks the way that the web and search engines are designed to work, and that creates untenable product and financial uncertainty.
Ever since the Government introduced C-18 last year, we have shared our experiences in other countries and been clear that unworkable legislation could lead to changes that affect the availability of news on Google’s products in Canada.
We have successfully collaborated with Governments and news publishers around the world on the shared goal of strengthening the news industry, and we currently have thousands of mutually beneficial agreements with news publications around the world.
We tried to take this same approach with Bill C-18. We repeatedly offered constructive feedback and recommended solutions that would have made it more workable for both platforms and publishers, unlocking further financial support for Canadian journalism. We also endorsed the alternative model of an independent fund for Canadian journalism supported by both platforms and the Government, an approach that’s worked elsewhere. We appeared several times before the Standing Committee on Canadian Heritage and the Senate Committee on Transport and Communications and submitted detailed recommendations to both committees.” – Google Press Release on June 29, 2023
According to Ricochet Media, Bill C-18 is a threat to Canadian Press Freedom.
Durham Radio News has come out and mentioned that Bill C-18 is already affecting their news operations.
“Tech giants are paying news outlets in that country, however 90 per cent of the revenue they pay goes to three big companies.
So even if they were paying Canadian news providers smaller outlets wouldn’t see any of that money. Not only does this bill hamper our ability to reach our audience it harms the community we serve. We post information about major road closures, outages and missing people. Those messages are spread to a wider audience via social media.
Independent local news is important to a community and it is under attack from multiple sides right now.”
2. Everyone has the following fundamental freedoms: (a) freedom of conscience and religion; (b) freedom of thought, belief, opinion and expression, including freedom of the press and other media of communication; (c) freedom of peaceful assembly; and (d) freedom of association.
Constitution Act, 1982 Tweet
Freedom of the press is an essential pillar of any free society. It guarantees the right of individuals and media organizations to express themselves freely and disseminate information without fear of censorship or retaliation. This freedom plays a crucial role in upholding transparency, accountability, and democracy.
First and foremost, freedom of the press ensures that citizens have access to a diverse range of information and opinions. It enables the press to act as a watchdog, holding those in power accountable for their actions and exposing corruption or wrongdoing. Without this freedom, governments and other powerful entities could control the narrative and manipulate public opinion, leading to an erosion of democracy and individual liberties.
Furthermore, a free press fosters an informed and engaged citizenry. It provides a platform for public discourse, allowing individuals to express their ideas, concerns, and grievances. In a free society, the press acts as a conduit for the exchange of information, fostering a marketplace of ideas that drives progress, innovation, and societal development.
Freedom of the press also plays a crucial role in safeguarding human rights. Journalists have the responsibility to investigate and report on human rights abuses, social injustices, and other pressing issues. By shining a light on these matters, the press can raise awareness, mobilize public opinion, and push for positive change.
In summary, freedom of the press is a cornerstone of a free society. It ensures the flow of information, fosters accountability, and empowers citizens to participate actively in public life. Protecting and upholding this fundamental freedom is vital for the preservation of democracy, human rights, and the pursuit of truth and justice.
WNews, a growing independence news organization dedicated to upholding the principles of freedom of the press, announced its plans to launch a legal, constitutional challenge against the Canadian Federal Government’s controversial Bill C-18, also known as the Online Act. WNews firmly believes that Bill C-18 poses a significant threat to Canada’s Freedom of the Press and is committed to defending this fundamental pillar of democracy.
Bill C-18, introduced by the government earlier last year and passed in Late June, has raised concerns among media organizations, journalists, and free speech advocates. The legislation has sparked a vigorous national debate about its potential impact on the freedom of expression, privacy rights, and press independence. WNews firmly believes that this proposed law undermines the press’s vital role in holding power accountable and ensuring transparency in a democratic society.
Recognizing the urgency and gravity of this issue, WNews has taken the decisive step to challenge the constitutionality of Bill C-18. The legal action aims to ensure that the rights and freedoms enshrined in the Canadian Constitution are upheld and protected for the benefit of all Canadians. The outcome of this legal battle will have far-reaching implications for the future of press freedom and digital rights in Canada.
WNews is calling on its dedicated readers, supporters, and all individuals who value the principles of press freedom and the importance of independent media to join forces in this crucial endeavour. WNews seeks to raise $60,000 through a crowdfunding campaign to initiate this legal challenge and cover associated expenses. The funds will be used to retain a team of legal experts specializing in constitutional law and digital rights advocacy.
“Our mission at WNews has always been to provide objective and trustworthy news coverage to the Canadian public,” said Eric Boland, Founder and CEO at WNews. “We firmly believe that the freedom of the press is the cornerstone of a healthy democracy, and Bill C-18 directly threatens this cherished principle. We cannot stand idly by while legislation undermines the very essence of democracy. We urge our readers and all concerned citizens to support us in this critical fight to safeguard our rights and protect the freedom of the press in Canada.”
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According to the government, news is in crisis because online platforms are taking news content from news producers. News companies are losing advertising revenue when small news snippets appear alongside links to their content on online platforms, consisting of 40-50 words, a thumbnail, and a header. However, this statement is not true.
In reality, news companies themselves post their articles on online platforms the most. They encourage the spread of their content on social platforms voluntarily, and they could easily block their articles from being shared on platforms if they wished to do so. Moreover, news snippets actually drive considerable advertising revenue to news organizations and give little in return to platforms. Snippets are just teasers for full articles that drive clicks. When users click through a link to a news article, all of the ad revenue on the news website goes to that news organization. Platforms are liable for copyright violation if they post news articles, and when they do, they almost always pay the authors.
Furthermore, news links generate a very small percentage of the overall content platform users share. The real money-maker is the users themselves. Most of us, most of the time, are reading and posting non-news content, such as jokes, interactions with our friends and family, memes, classifieds, personal updates, and so on. This pattern is not new. Even in the heyday of 20th-century news, news production itself was not lucrative.
Before the Internet became dominant, newspapers and broadcast stations were central community information sharing hubs with many functions. However, today, the Internet fulfills most of these functions more quickly and effectively, using search engines, specialized online services and communities, and the personal connection functions of social media. It is impossible to turn back the clock on the Internet, and trying to force advertising revenue back into a version of the old model is doomed to fail and will produce many new problems.
The Canadian government is taking a page out of Australia’s book by trying to get online platforms to pay news organizations through “voluntary” means instead of implementing direct obligations. Bill C-18 gives online platforms and qualified Canadian news organizations 6-12 months to make private payment agreements. If they can’t come to an agreement, the CRTC will step in with mandatory arbitration. This is essentially a form of Link Tax that could harm the spread of quality news and benefit misinformation.
Bill C-18 also gives the CRTC the power to overrule payment agreements based on revenue and non-monetary benefits. This policy seems like a shakedown rather than a legitimate attempt to support Canadian journalism. Instead of this flawed approach, revenue from the upcoming Digital Services Tax could be directed towards news in a more effective manner.
Overall, Bill C-18 has a shaky foundation and could lead to harmful legislation for Canadian journalism.
The recently introduced Bill C-18 warns both news organizations and platforms against manipulating the system. Platforms must not suppress news content, and news organizations cannot game the system to increase links and compensation. Additionally, platforms must not discriminate against news outlets or prioritize their own content over news outlet content. Violations can result in fines of $10-15 million.
Long lists of forbidden practices in legislation indicate a recognition that the incentives for both sides to cheat and distort outcomes are high. The result is often a struggle to barely adhere to the letter of the law while violating its spirit.
The cost of linking to quality journalism may lead to less of it appearing on social media. Online platforms may discourage substantive conversations that feature news sharing or fail to develop new features and products that facilitate news sharing.
Bill C-18 surprisingly prevents platforms from prioritizing quality journalism for Canadians. If platforms must carry content from all government-approved Canadian news organizations and cannot modify their ranking in their feeds and algorithms, they will have no capacity to prioritize news stories from authoritative and trusted sources.
Although the goal of Bill C-18 is to improve Canadians’ access to quality journalism, indiscriminately mingling poorly sourced yellow journalism with reputable sources may occur if platforms cannot apply their community guidelines and judgement of organizational reputation when deciding to host, showcase, and amplify articles.
Under Bill C-18, news groups that want to use the mandatory settlement system must either be certified as a Qualified Canadian Journalism Organization (QCJO) or receive special authorization from the CRTC. However, it’s unclear what a QCJO is.
QCJO certification was introduced in 2019 as part of a $600 million media bailout to support select media outlets and create jobs in the news industry. The Minister of National Revenue was tasked with granting QCJO status to news organizations. Nevertheless, recent reporting by Canadaland has revealed that the QCJO system has become haphazard in its decision-making process for determining who produces quality news.
Obtaining QCJO status is an opaque process that lacks basic public accountability and due process. There is no transparency into how decisions are made, no reporting of who has applied and been accepted or rejected, no information on who receives funds, and no appeal process for organizations that gain or lose status. Currently, a small panel of academics decides QCJO applications, but the minister can override their decisions and grant or exempt QCJO status.
Determining who produces quality news is a challenging task. If the standard is too high, the ruling government may misuse the system to favor news that aligns with its political agenda. However, if the standard is too low, bad-faith organizations posing as credible news sources may access subsidies to spread their content to a broader audience.
Building a functional system on a broken one is not feasible, yet that’s precisely what Bill C-18 proposes to do. Deciding who produces quality news, with all the associated financial and search benefits, is too crucial to rely on the shaky and opaque QCJO system.
How can we develop a new and effective business model for researching and reporting news? What does a diverse range of local news outlets look like in the digital era? These are intricate questions that require sophisticated solutions. Ideally, the public and journalists would discuss and reach a consensus. However, Bill C-18 has transferred the responsibility of answering these questions to online platforms while simultaneously striving to achieve a set of commendable government objectives.
Under C-18, platforms must contemplate and execute a lengthy list of requirements to acquire exemption from further regulation. Their contracts with news organizations must:
There is a growing concern regarding the potential influence of online platforms in deciding which news production projects to fund and supporting local and linguistically diverse news content.
This concern stems from the fact that C-18 grants online platforms significant financial power, which could ultimately determine how news is presented in Canada.
Although the CRTC is the ultimate judge of their performance, there is a worry that all agreements between online platforms, news organizations, and the CRTC will remain confidential unless the CRTC intervenes.
This lack of transparency is a major issue for Canadians, especially as criticism towards online platforms grows and their influence expands. While journalism that is financially supported is essential, it is imperative that it remains independent and not influenced by subtle recommendations from online platforms offering funding.
The dwindling presence of local news coverage is a growing concern, with the closure of over 450 media outlets, predominantly small community papers, from 2008 to 2021. Bill C-18 has been introduced to address this issue, but it falls short in its efforts to provide adequate support for smaller news organizations. The bill’s provisions for deals between platforms and news organizations are structured in a way that favours larger companies like Bell, Postmedia, and the CBC, leaving smaller and localized news outlets at a disadvantage. These smaller entities are faced with the challenge of forming cartels to negotiate, with no dedicated compensation available to revive the already extinguished local news.
This has created a situation where C-18 functions as a subsidy for legacy media, placing small and startup challengers at a further disadvantage, especially those who are yet to demonstrate the years of work required for QCJO status.
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WNews will donate part of the reminding funds to OpenMedia who’s fighting for Openness of the internet and Freedom of Media in Canada.
“OpenMedia is a community-driven organization that works to keep the Internet open, affordable, and surveillance-free. We operate as a civic engagement platform to educate, engage, and empower Internet users to advance digital rights around the world.”
You can learn more about OpenMedia at https://openmedia.org/
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