Pablo Rodriguez Liberal
This bill has received Royal Assent and is, or will soon become, law.
This is from the published bill. The Library of Parliament has also written a full legislative summary of the bill.
This enactment regulates digital news intermediaries to enhance fairness in the Canadian digital news marketplace and contribute to its sustainability. It establishes a framework through which digital news intermediary operators and news businesses may enter into agreements respecting news content that is made available by digital news intermediaries. The framework takes into account principles of freedom of expression and journalistic independence.
The enactment, among other things,
(a) applies in respect of a digital news intermediary if, having regard to specific factors, there is a significant bargaining power imbalance between its operator and news businesses;
(b) authorizes the Governor in Council to make regulations respecting those factors;
(c) specifies that the enactment does not apply in respect of “broadcasting” by digital news intermediaries that are “broadcasting undertakings” as those terms are defined in the Broadcasting Act or in respect of telecommunications service providers as defined in the Telecommunications Act ;
(d) requires the Canadian Radio-television and Telecommunications Commission (the “Commission”) to maintain a list of digital news intermediaries in respect of which the enactment applies;
(e) requires the Commission to exempt a digital news intermediary from the application of the enactment if its operator has entered into agreements with news businesses and the Commission is of the opinion that the agreements satisfy certain criteria;
(f) authorizes the Governor in Council to make regulations respecting how the Commission is to interpret those criteria and setting out additional conditions with respect to the eligibility of a digital news intermediary for an exemption;
(g) establishes a bargaining process in respect of matters related to the making available of certain news content by digital news intermediaries;
(h) establishes eligibility criteria and a designation process for news businesses that wish to participate in the bargaining process;
(i) requires the Commission to establish a code of conduct respecting bargaining in relation to news content;
(j) prohibits digital news intermediary operators from acting, in the course of making available certain news content, in ways that discriminate unjustly, that give undue or unreasonable preference or that subject certain news businesses to an undue or unreasonable disadvantage;
(k) allows certain news businesses to make complaints to the Commission in relation to that prohibition;
(l) authorizes the Commission to require the provision of information for the purpose of exercising its powers and performing its duties and functions under the enactment;
(m) requires the Canadian Broadcasting Corporation to provide the Commission with an annual report if the Corporation is a party to an agreement with an operator;
(n) establishes a framework respecting the provision of information to the responsible Minister, the Chief Statistician of Canada and the Commissioner of Competition, while permitting an individual or entity to designate certain information that they submit to the Commission as confidential;
(o) authorizes the Commission to impose, for contraventions of the enactment, administrative monetary penalties on certain individuals and entities and conditions on the participation of news businesses in the bargaining process;
(p) establishes a mechanism for the recovery, from digital news intermediary operators, of certain costs related to the administration of the enactment; and
(q) requires the Commission to have an independent auditor prepare a report annually in respect of the impact of the enactment on the Canadian digital news marketplace.
Finally, the enactment makes related amendments to other Acts.
All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.
Rachael Thomas Conservative Lethbridge, AB
For further clarification, without the link, is it your understanding that Bill C-18 would not give rise to or provide opportunity for Facebook, in this example, to be determined a DNI and therefore scoped in by the CRTC or even perhaps penalized by the CRTC?
Chris Bittle Liberal St. Catharines, ON
Thank you so much, Madam Chair.
This amendment was written with the idea that Bill C-18 somehow violates international copyright agreements like the Berne Convention, but I'd like to remind some colleagues of the testimony we heard that dispelled copyright-related concerns about the bill.
This is from Professor Stephens, who said, “criticisms that Bill C-18 will violate Canada's international trade obligations, including the Berne copyright convention...do not stand up to scrutiny.” He also added there is no “strong legal argument to challenge the bill under either CUSMA or Berne.”
Further, Mrs. Thomas talked about the charter. I don't believe we heard any evidence about charter concerns either. This is a respected expert on the subject.
We are opposed.
Chris Bittle Liberal St. Catharines, ON
Thank you so much, Madam Chair.
I guess my comments relate to both NDP-11 and PV-3, if we get there.
In Bill C-18, platforms must negotiate over the ways they make news content available. It allows parties to reach the deals that focus on the use of content that benefits them both.
This amendment shifts the focus of compensation from a broad conception of the value of news content to the DNI, to a narrow concept of cost of production. Editorial expenditures, as a measure for fair compensation, could be perceived as a tax on platforms, which could lead to trade and legal concerns. It could also discourage innovation by only rewarding established forms of news production, such as conventional newsrooms. This will likely undermine the compensation that is paid through the regime.
As we've said before, we should leave it to the parties to negotiate freely. We shouldn't be too restrictive in this bill.
Peter Julian NDP New Westminster—Burnaby, BC
Thank you very much, Madam Chair.
The paragraph we propose to add is:
19.1 Any provision in a covered agreement respecting payments to be made by a digital news intermediary to a news business must be based solely on the editorial expenditures of the business.
This proposal comes from Canada's independent online news publishers, which include new media, metropolitan media and several publications from across Canada.
The independent online news publishers of Canada have made this suggestion in terms of improving the fairness around the formula. I think we've succeeded as a committee, Madam Chair, in adding transparency to Bill C-18 and closing a lot of the loopholes.
The fair-funding aspect is extremely important to the independent online news publishers of Canada right across the country. I wanted to shout out to the Burnaby Beacon and the New West Anchor, two of those online publications that do very good work in our community.
The essence of the amendment is to focus on editorial expenditures, on journalists. The payments should really be made in terms of setting staff time and freelance contract labour in journalism. That is why they made the suggestion to put in place a level playing field.
In terms of the appropriate number of editorial expenditures to be covered, we saw in the Australian example that we're talking about 30% to 35% of editorial expenditures. In other words, what this amendment would do is put in place a fair-funding formula based on editorial expenditures, something that is alluded to in the bill but isn't as clear as this amendment would make it.
With thanks to the independent online news publishers of Canada, I move NDP-11, an amendment that would ensure that payments are based solely on editorial expenditures, on the actual provision for journalism in the business.
Thank you.
Chris Bittle Liberal St. Catharines, ON
Thank you so much, Madam Chair.
We've discussed this aspect of Bill C-18 a lot. It allows parties to reach deals that focus on the use of the content and benefit them both. This amendment, we believe, narrows the scope of what compensation is. We think this may actually lower the value deals for publishers. We've been clear that it's not for the government to determine the conception of value; it's for the parties to come to the table and negotiate on what value is.
Like previous amendments we've seen before this committee, this amendment only benefits the platforms and foreign tech giants. Unfortunately, time and time again, as we're slow-rolling through this bill, the Conservatives seem to want to give platforms the ability to tell news organizations how much they'll get.
I think the rest of the parties have demonstrated that we believe we need to rein in foreign tech giants. It's unfortunate that there's one party here that doesn't share that belief.
Peter Julian NDP New Westminster—Burnaby, BC
Thank you very much, Madam Chair.
What NDP-10 sets out is a bargaining process in terms of timing. It closes a potential loophole within Bill C-18. Right now, the amount of time that it would take for each step is uncertain. What that would lead to is a modification on page 8, lines 2 to 11, starting off with:
(a) negotiation or bargaining sessions over a period of up to 90 days;
(b) if the parties are unable, within the negotiation or bargaining period, to reach an agreement, mediation sessions of up to 120 days, beginning on the day after the end of the negotiation or bargaining period; and
(c) if the parties are unable, within the mediation period, to reach an agreement and at least one of the parties wishes to initiate arbitration, final offer arbitration for a period of up to 45 days, beginning on the day after the end of the mediation period.
This amendment also foresees that “the Commission”, upon “request of the parties” can extend any of the periods that are set out. Basically, it pushes big tech to reach agreements. They can't skate around the ice and rag the puck. Because it does go to final arbitration after each of these periods is completed, it does compel that level playing field. I think so many of our small media across the country are looking for timelines that push big tech to negotiate those agreements.
That is the intent around NDP-10. I believe Mr. Housefather has a technical amendment that I believe I'll welcome. Hopefully we can pass a vote on NDP-10.
The Chair Liberal Hedy Fry
Good morning, everyone.
I call the meeting to order.
Welcome to meeting number 57 of the House of Commons Standing Committee on Heritage.
I would like to acknowledge that this meeting is taking place on the unceded traditional territory of the Algonquin Anishinabe people.
Pursuant to the order of reference adopted by the House on Tuesday, May 31, the committee is resuming clause-by-clause consideration of Bill C-18, an act respecting online communications platforms that make news content available to persons in Canada.
Today's meeting is taking place in a hybrid format, pursuant to the House order of Thursday, June 23, 2022. Members attending in the room know what to do. You've done it so many times before. Members with us virtually also know what to do, as they've done it so many times before as well.
Please wait until I recognize you by name. For those participating by video conference, click on the icon at the bottom. Please remember that all comments should be made through the chair.
Before we start, I wanted to convey on your behalf our condolences to Peter on the passing of his mother. Peter, our thoughts are with you. It must be very hard losing a parent. I know. We are all thinking about you and are with you in this moment of grief.
Mr. Housefather, your hand is up.
Peter Julian NDP New Westminster—Burnaby, BC
Again, my thanks go to Mr. Housefather for his brilliant and methodical approach on this issue. I want to thank CACTUS, which indicated to us the importance of the subamendment that we just adopted.
As far as NDP-7 is concerned, I want to underline that APTN, Dadan Sivunivut and the Fédération nationale des communications and de la culture all offered this important suggestion to ensure that indigenous news outlets are a part of clause 11 and part of the obligations that the web giants have before they can apply for an exemption.
In other words, they are something that needs to be considered. The obligations would include ensuring that a significant portion of indigenous news outlets benefit from them and that they contribute to the sustainability of those outlets in a way that supports the provisions of news content by and for indigenous peoples.
It also includes that these agreements have been entered into business models that provide services to all markets and diverse populations, including anglophone and francophone communities, official language minority communities and Black and other racialized communities. There's no doubt that this amendment helps to strengthen the diversity component of the legislation.
I want to thank all those who testified before us and made those important suggestions. I hope that this amendment will be adopted and improve Bill C-18.
Chris Bittle Liberal St. Catharines, ON
Again, I know that with Bill C-11 and Bill C-18 there have been concerns raised that the CRTC is going to regulate content. Nothing in the bills, and no amendments, do that. This is the only amendment we've seen in those two bills that would put the CRTC in a position to regulate content, which is, again, surprising.
We're opposed.
Chris Bittle Liberal St. Catharines, ON
I'll be very quick, Mr. Chair, as Monsieur Champoux said it much better than I possibly could have.
My only comment is that it's a little surprising that the Conservatives want to expand the scope of this bill so that the CRTC is in the position to evaluate the ideology of a news organization when granting an exemption order. It seems to go counter to everything we've heard on Bill C-11 and Bill C-18, but here we are.
Martin Champoux Bloc Drummond, QC
Thank you, Mr. Chair.
Bill C‑18 seeks to address the existing imbalance in the news industry. It's an attempt to keep the web giants from encroaching upon businesses that produce news content. The objective is to save newsrooms. We must keep that in mind in the amendments we vote on today.
There are certain fundamentals in journalism. For a journalist to be recognized as such, he or she must meet certain standards of excellence, including independence, fairness and rigour. If anything should be excluded from the journalism profession, it's opinion and ideology. While these publications must also have their fair share of the pie and the playing field must be relevelled in relation to the web giants, that's not the purpose of Bill C‑18. The bill instead seeks to support news and information itself.
Therefore, I won't support this subamendment because it will just open the door to all kinds of opinion and ideology media. I do not consider that to be journalism. I may be a bit of a purist, but we need to ensure that journalistic standards are upheld. That's what Bill C‑18 needs to protect. That's why I won't support this subamendment.
Chris Bittle Liberal St. Catharines, ON
I won't go over it too much because I discussed it with the previous amendment by Mr. Julian. Again, I think it's really coming from a very good place in terms of Mr. Julian's desire to protect workers, but the goal of Bill C-18 and the reason for the exemption is that the benefit is to encourage foreign tech giants to enter into as many negotiations as possible and to also, at the same time, encourage collective bargaining.
Again, I'm worried about this amendment undermining the regime and jeopardizing the bill. There's a possibility of a trade risk. The amendment is unnecessary and has the same outcomes that could be achieved through collective bargaining, or news organizations can band together and seek deals, which was what we saw in the Australian model.
I appreciate the effort to try to increase the number of deals, but I think that at the same time, the intention may reduce them or may drag things out and highlight what Mr. Housefather said before.
I'm rambling a bit at this point in my own remarks.
Chris Bittle Liberal St. Catharines, ON
The exemption criteria set out in the bill are some of the primary tools of Bill C-18. That's the premise.
Chris Bittle Liberal St. Catharines, ON
Thank you so much, Mr. Chair.
We heard from experts like Professor Owen that the exemption criteria set out in the bill are the primary policy tools in play for Bill C-18. They ensure that smaller players would benefit and they ensure that the deals would not allow corporate influence over news coverage.
This amendment takes away from that, and once again we see the Conservatives presenting what seems like a reasonable amendment but one that again takes the side of big tech over Canadian news organizations.
The Vice-Chair Conservative Kevin Waugh
I call the meeting to order.
Good afternoon, everyone.
I'm filling in for our chair, Dr. Fry, who is not with us this Friday. For the next two hours, you're stuck with me as the vice-chair. Thank you very much, everyone.
Welcome to meeting number 56 of the House of Commons Standing Committee on Canadian Heritage. First off, I would like to acknowledge that this meeting is, in fact, taking place on the unceded traditional territory of the Algonquin Anishinabe people.
Pursuant to the order of reference adopted by the House on Tuesday, May 31, 2022, the committee is resuming clause-by-clause consideration of Bill C-18, an act respecting online communications platforms that make news content available to persons in Canada. Today's meeting is taking place in a hybrid format, pursuant to the House order of Thursday, June 23, 2022. Members are attending in person in the room and remotely, as we see them on the Zoom application.
I would like to make a few comments for the benefit of witnesses and members. Please wait until I recognize you by name before speaking if you can. For those participating by video conference here this afternoon, as you know, click on the microphone icon to activate your mike, and please mute yourself when you're not speaking.
Interpretation is available for those on Zoom. You have the choice, at the bottom of your screen, of either “floor”, “English” or “French”. For those in the room, you can use the earpiece and select the desired channel.
I remind everyone that all comments should be addressed through the chair.
In accordance with our routine motion, I am informing the committee that all witnesses are present here this afternoon; therefore, no connection tests in advance of the meeting were required.
I would now like to welcome the witnesses, who are present to answer any technical questions we have about our Bill C-18 today.
I'd like to welcome, from the Department of Canadian Heritage, as always, Owen Ripley; Joelle Paré, acting director; and Pierre-Marc Lauzon. Thank you very much for joining us.
With us, as usual, is the committee clerk, Ms. Belmore. We also have the legislative clerks today. They are Philippe Méla and Jean-François Pagé.
That's everyone in the room.
Marion, you're at the back there. Thank you for also joining us here today.
We were waiting for Mr. Shields. He is on now.
We'll start where we left off on Tuesday, which was at amendment CPC-12. That's by Mrs. Thomas. Perhaps she could lead us. That's on page 18 for everybody. It's clause 7 on page 4.
Mrs. Thomas, lead us off on amendment CPC-12.