by Maj (ret'd) CORNELIU. CHISU, CD, PMSC,
FEC, CET, P. Eng.
Former Member of Parliament
Pickering-Scarborough East
With the latest developments in the news media world and a continuingdecline in the level of trust Canadians have in the established news channels, such that they are increasingly reluctant to pay for it, the industry is facing a real problem.
Lobbied for years by a news media industry that had seen billions of dollars in advertising shift from their suddenly less interesting products to the flashing lights and sensory balms of social media and search engines, the Liberal government of Canada has decided to come to the rescue. In doing so, it might very well have killed the industry.
As we have become accustomed to some of the ill-conceived Liberal government legislation, Bill C-18, The Online News Act, should not come as a surprise.
The federal Liberal government’s attempts to become world leaders in rescuing journalism have not only collapsed,but pushed the nation’s private sector news industry to the edge of an economic abyss. It is difficult to recall a more complete public sector failure than this.
The law requires tech companies such as Meta and Google to negotiate deals compensating media outlets for news content they share or otherwise repurpose on their platforms.
While the intent of the law is to help preserve Canadian journalism at a time when newsrooms are struggling to compete for online advertising dollars, the fallout has been swift.
As common sense implies there were immediate reactions to the bill. The arrogance of the Liberal government has sparked a strong reaction that seriously damages the ability of ordinary Canadians to get information.
The bill covers Big Tech companies — itis designed to specifically target Google and Meta — that “make news content available to persons in Canada.” However, if Meta and Google block news links from their platforms, they will no longer be subject to the legislation.
Bill C-18 received royal assent earlier this month. Designed such that it would force Meta and Google to reach commercial deals with news publishers to share revenues for news stories that appear on their platforms.
In reaction tothis and in response to Bill C-18, Meta and Google have said they will pull news from their platforms, including Facebook, Instagram, and Google Search
It is now clear that the bill was based on the flawed premise that Google and Meta benefit from news links posted to their platforms, when it isactually the news outlet that benefits.
Meta has said there is no compromise solution under the current bill, and that it is not negotiating with the government. While Google initially entered into last-minute talks with Heritage Minister Pablo Rodriguez, the company said last week that those talks weren’t successful in addressing its concerns.
Once again the Liberal government has shown that they operatefrom an ivory tower.
The results produced by this ill-conceived legislation are that Google will pull Canadian news from Google Search and its other products in Canada, over legislation that would force it to share revenues with news publishers.
“We have now informed the Government that when the law takes effect, we unfortunately will have to remove links to Canadian news from our Search, News and Discover products in Canada,” Google stated in a blog post.
It will also kill existing deals with publishers. “C-18 will also make it untenable for us to continue offering our Google News Showcase product in Canada,” it said.
The Parliamentary Budget Officer has estimated that under the bill, which is clearly aimed at the two companies, Google and Meta could end up funding more than 30 per cent of newsroom costs, just under $330 million a year.
However, if Google and Meta remove news from their platforms, they will no longer be covered under the Online News Act.
That means publishers won’t be getting additional funding, and will also lose an undisclosed sum in existing deals. In Canada, Google has signed deals with news publishers that cover 150 outlets through its Google News Showcase program.
Google pays news outlets to licence content for the program, though the financial terms of the deals with outlets haven’t been disclosed.
In the same vein, Meta has said that the company is sticking with its plans to block news content on its Facebook and Instagram platforms.
It has also begun cancelling existing deals with news publishers, including The Canadian Press.As the fallout from the federal government’s Online News Act continues, Facebook parent Meta is terminating a contract with The Canadian Press that saw the digital giant support the hiring of a limited number of emerging journalists at the national newswire service.
The newswire agency was informed that Meta will end the contract, which has funded roughly 30 reporting fellowship positions for early-career journalists at Canadian Pres since the program’s inception in 2020.
Canadian Press executive editor Gerry Arnold reported that Meta said so in its letter informing the media company of its decision.
Meta clearly linked its termination of the program to Canada’s Online News Act, which became law last week.
“We were told the Act has an adverse impact on Meta’s position in Canada to operate some products.It’s a business decision by Meta, in light of the changing regulatory environment”Arnold said.
Meta declined to comment on the issue, but the tech giant has been outspoken about its opposition to the new federal law, formerly known as Bill C-18.
In conclusion, we can see that the Liberal government, in its quest to control what Canadians can see or hear, bluntly called censorship, has gotten a surprising reaction from thesetwo big companies,Thus demonstratingonce again,a total lack of humility in the thinking and actions of this government .
My question is this: When will this government start toserve Canadians, not only itself; pursuing inordinately costly, scientifically immature, Canadian environment inappropriate if not unsound, pie-in-the sky projects, like climate exchange/carbon-tax, electric vehicles (for our sub-zero temperatures and distances!!??)and attempting to syphon revenue off private businesses that are already shoring up government lackeys like the CBC?
Wake up Canada!
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