A bill that mandates tech giants pay news outlets for their content has come into effect in Canada amid an ongoing dispute with Facebook and Instagram owner Meta over the law.
Some have hailed it as a game-changer that sets out a permanent framework that will see a steady drip of funds from wealthy tech companies to Canada’s struggling journalism industry.
But it has also been met with resistance by Google and Meta – the only two companies big enough to be encompassed by the law.
In response, over the summer, Meta blocked access to news on Facebook and Instagram for Canadians.
Google looked set to follow, but after months of talks, the federal government was able to negotiate a deal with the search giant as the company has agreed to pay Canadian news outlets US $75m annually.
No such agreement appears to be on the horizon with Meta, which has called the law “fundamentally flawed”.
If Meta is refusing to budge, so is the government.
“We will continue to push Meta, that makes billions of dollars in profits, even though it is refusing to invest in the journalistic rigor and stability of the media,” Prime Minister Justin Trudeau told reporters on Friday.
So what exactly is the law? And how does it work?
Bill C-18, officially called the Online News Act, was introduced by Canada as a way to “enhance fairness” for news publishers by carving out way for them to be compensated by tech giants.
It applies to companies that operate social media platforms or search engine websites in Canada – where news is often shared and disseminated – and that have a total global revenue of more than C$1bn in a calendar year.
These platforms also need to have a monthly average of 20 million Canadian visitors or active users.
Media outlets that can receive funds include any news publisher with an online presence in Canada.
The tech companies must reach financial agreements with each individual outlet, or one single agreement in which multiple news outlets receive a percentage of promised funds.
Under the single deal struck between the government and Google, for example, up to 30 per cent of the funds will go towards broadcasters, with 7 per cent of that going to Canada’s public broadcaster, the CBC.
A majority of the money will go to print and online media, with the amount determined by how many full-time employees they have.
Australia passed a similar legislation in 2021. Meta briefly blocked news there but stopped after amendments to the law were made. Google and Meta have since negotiated a number of deals with Australian media companies.
Other countries, like the UK and the US, have also signalled that they may move to enact similar laws. (BBC)