Published July 20, 2023 11:03 p.m. ET
Updated Aug. 1, 2023 6:28 p.m. ET
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Canada's Bill C-18 became law in June, requiring tech companies to compensate media organizations if they want to host Canadian news content on their platforms.
Both Google and Meta have rejected the framework, saying they'll be blocking Canadian news from their platforms.
For Meta, this is now underway, with the company saying on Aug. 1 the changes "start today, and will be implemented…over the course of the next few weeks."
What does this bill, and the responses from the tech giants, actually mean for Canadians?
In brief, the tech giants don't want to pay to host Canadian news content as required by C-18, so Canadians will no longer see it appear on Facebook, Instagram and Google. Instead, audiences will have to seek news out elsewhere, since the content produced by Canadian news organizations will be blocked on those platforms.
What is Bill C-18?
Bill C-18, or the Online News Act, lays out a framework that would require digital giants such as Google and Meta to develop agreements with Canadian news sites to provide them with compensation for sharing their online news content through links or other means.
"The Bill introduces a new bargaining framework intended to support news businesses to secure fair compensation when their news content is made available by dominant digital news intermediaries and generates economic gain," an explanatory note from the government says.
"It seeks to support balanced negotiations between the businesses that operate dominant digital news intermediaries and the businesses responsible for the news outlets that produce this news content."
Who does Bill C-18 affect?
The bill requires tech companies to compensate Canadian news organizations when their content appears on their platforms. The federal government says the bill is to help the Canadian news industry, which has seen falling subscriptions and ad revenue over time as those profits shift to Google and Facebook.
According to an Angus Reid report released in July, 85 per cent of Canadians do not pay for any online news subscriptions and Canadians under the age of 64 usually check social media sites such as Facebook and Reddit first to get their news.
The Parliamentary Budget Officer, which provides economic and financial analysis to the government as an independent body, estimates the bill would shift around $329 million to the Canadian news industry.
When does Bill C-18 go into effect and how will tech giants respond?
The Online News Act is set to come into effect no later than 180 days after June 22, the day it received Royal Assent.
Work is underway now on the federal government side of the bill to create the regulatory framework that will bring Bill C-18 into effect.
In the absence of a negotiated deal being reached that could see the regulations address their concerns, platforms are poised to pull news access over the next few weeks.
Both Google and Meta – the company behind Facebook and Instagram – have stated that they will be blocking Canadian news from their platforms in response to the new law.
Google has called the bill a “link tax,” saying that it “breaks the way the web and search engines have worked for more than 30 years.”
"For many months, we have been transparent about our concerns with the Online News Act. It is based on the incorrect premise that Meta benefits unfairly from news content shared on our platforms, when the reverse is actually true," said Rachel Curran, head of public policy for Meta Canada, on Aug. 1.
The companies' response is to block Canadian news content from appearing on their platforms, rather than enter compensation deals with newsrooms.
Where will news be blocked?
Content from Canadian news platforms will not be visible on Facebook or Instagram in the coming weeks, and eventually will be blocked on Google as well.
Meta said Aug. 1 that the company has already "begun the process of ending news availability in Canada," and that the changes will be implemented for all Canadian users of its social media platforms "over the course of the next few weeks."
Meta said this includes news articles and video or audio posted by Canadian news outlets. Any links or other content will not be viewable by the public.
News publishers outside of Canada will be able to continue to post, but their content will not be visible by Canadian users either.
According to a June 29 statement from Google, links to Canadian news will be removed from its Search, News and Discover products at some point.
The company noted that users will still receive its SOS Alerts, which provide relevant safety information in the event of a crisis such as a forest fire, flood or earthquake.
Which news organizations are impacted?
Publications that make the delivery of news their main focus will be most affected by Google and Meta blocking content.
The definition of what counts as a news business according to the legislation is an “individual or entity that operates a news outlet in Canada,” and a news outlet is any entity whose “primary purpose is to produce news content.”
Google notes that it will not be hosting links to content that has been defined as an “eligible news business” by Bill C-18.
The legislation states that news businesses are considered eligible as long as they fall under certain requirements, including:
- producing news content of “public interest”;
- employing two or more journalists in Canada;
- operating in Canada; and
- following the code of ethics of a recognized journalistic association or its own code of ethics that aligns with journalistic integrity.
An eligible news business also must produce news content “that is not primarily focused on a particular topic such as industry-specific news, sports, recreation, arts, lifestyle or entertainment,” according to Bill C-18, suggesting that lifestyle magazines and similar publications may not be affected by Google and Meta blocks.
CTV News, CP24 and BNN Bloomberg, which are all part of Bell Media and owned by parent company BCE, will be affected by the news block. In response, Bell Media has pulled all of its advertising from Meta.
Does this mean Canadians won't have access to news websites at all?
Canadians will still be able to access Canadian news sources by navigating directly to their websites.
Google itself recommends Canadians “visit their preferred news outlets' websites directly – or download their app – and sign up for newsletters or subscriptions so that they can stay up to date with the latest news directly from the sources that matter most to them.”
Bookmarking your most frequently visited news websites now will allow you to navigate to them quickly even if their links are not being shared when you search a topic on Google.
Canadians will also still be able to see news from international news sources through Google.
How do I know if my news is being blocked?
In order to tell if news links are being blocked for you, simply go to the Google search engine and type in search terms connected to Canada, such as “Ottawa” or “Trudeau” and then click on Google's “News” tab.
If mostly news sources from the U.S. pop up, you're likely among the users who are not being shown links to Canadian news outlets.
What are supporters saying about Bill C-18?
Supporters of the Liberal government's bill say that it is a way to keep tech giants in check and cut into their digital dominance and that journalists should be compensated for their work being used to help tech giants bring in more eyes and thus more ad revenue.
Then-Canadian heritage minister Pablo Rodriguez told CTV's Power Play in late June that tech companies have gotten too powerful.
"Around 500 newsrooms closed their doors across the country… and they will continue closing their doors," Rodriguez said. "The status quo is not working because the money is going to the tech giants."
Echoing this in a fresh comment reacting to Meta's latest move, Rodriguez' replacement Heritage Minister Pascale St-Onge focused on Google and Meta earning 80 per cent of digital advertising revenue while newsrooms continue to be shuttered, calling the decision to pull news access before the act comes into force “irresponsible.”
"Facebook knows they have no obligations under the Act right now. They have not participated in the regulatory process," said St-Onge, who was shuffled into the hot federal file by Prime Minister Justin Trudeau, in a late July rejig of his front bench. “They would rather block their users from accessing good quality and local news instead of paying their fair share to news organizations.”
Trudeau has previously said Meta and Google’s “bullying tactics” will not work and that his government is trying to ensure those companies do not weaken Canada’s democracy by threatening its media industry.
Last year, Meta made more than US$23 billion in profit while Alphabet, Google’s parent company, made close to US$60 billion.
A recent survey from the Angus Reid Institute suggested that 82 per cent of Canadians agree “too few tech companies have too much power over the internet.”
Sixty-three per cent of people surveyed indicated they are worried about losing access to Canadian news on Facebook and Google.
What is the criticism of Bill C-18?
Bill C-18 has prompted debate in Parliament and beyond.
Conservative Leader Pierre Poilievre has criticized the legislation as an attempt by Trudeau to "control the news Canadians see."
Reacting to the latest Meta move Aug. 1, the Official Opposition leader suggested "it's like 1984."
"You have a prime minister passing a law to make news articles disappear from the internet. Who would ever have imagined that in Canada, the federal government would pass laws banning people from effectively seeing the news?" he said.
"Whether it's big tech, or Trudeau's big government, censorship is always and everywhere, wrong."
Others have voiced concern that Google and Meta blocking news links from Canadian news sources will lead to a drop in media literacy.
Tech and cybersecurity expert Ritesh Kotak told CTV News Channel in late June that the removal of news from Google and Meta's platforms could lead users to rely on unverified stories, making "deciphering fact from fiction" that much more difficult.
"This is a serious problem for news organizations and also members of the public," he said, adding that news outlets should do more to promote their own platforms.
A brief history of Bill C-18
Rodriguez introduced the Online News Act on April 5, 2022.
The legislation comes at a time when Canadian media outlets have experienced years of major declines in revenue, according to financial reports, research on media and the federal Liberal government. This includes advertising revenue, which historically has been a key source of revenue for many outlets.
According to a 2017 report from the Public Policy Forum, at least one-third of Canadian journalism jobs have disappeared since 2010, and many Canadian news media businesses are shrinking, having to cut costs and jobs, or closing altogether.
The purpose of the bill, the Liberals have said, is to rebalance the power dynamics in the digital news marketplace in order to ensure fair compensation for Canadian media outlets and journalists. The government has also made it clear that “the world is watching Canada” as other countries look to introduce similar legislation “standing up” to tech giants.
Bill C-18 is based on a similar piece of legislation in Australia called the News Media and Digital Platforms Mandatory Bargaining Code.
The code enables eligible news businesses to bargain individually or collectively with digital platforms over payment for the inclusion of news on the platforms and services, according to the Australian Communications and Media Authority.
The Canadian bill adds a few components. For example, Bill C‑18 introduces an independent audit process and requires the publication of certain information on matters such as exemption orders and administrative monetary penalties.
With files from CTV News' Senior Digital Parliamentary Reporter Rachel Aiello and The Canadian Press
Correction:
An earlier version of this article suggested that Google's testing phase of its plan to block local news was still underway. These tests wrapped up in mid-March.
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