Bill C-18

Online News Act

An Act respecting online communications platforms that make news content available to persons in Canada

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.

[Peter Julian, NDP, New Westminster—Burnaby, BC]

Thank you very much, Madam Chair.

I have a very quick question for you, Ms. Ageson. How many of the members of your coalition, the Independent Online News Publishers of Canada, are currently not covered by Bill C-18 without amendments?

We have talked about freelancers, owner-journalists. How many of the members of your coalition right now would not be covered by Bill C-18 unless those amendments are brought in?

[Caroline Desbiens, Bloc, Beauport—Côte-de-Beaupré—Île d’Orléans—Charlevoix, QC]

I'm going to try to speak a bit more slowly for our wonderful interpreters. Perhaps that is the problem.

There is a famous person who lived on Île d'Orléans. A small newspaper, called Autour de l'Île, which only has one reporter on its payroll, might have to fold if we don't bring a small amendment to Bill C‑18, to include print media that employ only one editor or reporter.

Because of Félix Leclerc's celebrity status as a writer and composer who is well known in Europe, the newspaper in question is read not only regionally but also internationally. The newspaper might fold if print media who employ only one reporter are not included in the bill. This situation is worrying for us.

Have you witnessed this type of phenomenon over the course of your journalistic career?

[Rachael Thomas, Conservative, Lethbridge, AB]

Mr. Menzies, you've suggested that Bill C-18 will actually inhibit journalistic independence and will actually make newsrooms more partisan in nature, which is part of what you're talking about right now. It's that trust and accurate reporting.

I'm wondering how you see this playing out.

[Peter Menzies]

The point I was trying to make here really is that the current playing field is not level. It perpetuates an unlevel playing field. Really, what Canada needs.... Bill C-18, very broadly, is a reaction to a particular situation. It's not part of a broader policy framework, which is what the country needs in order to get through a period of transition. Maybe it's part of it. Maybe it isn't, but the current playing field is not level.

The CBC gets subsidized. It's fine to have a public broadcaster that's subsidized, but if you're going to have it compete commercially with everybody else in a world in which news has moved and will be inevitably entirely online, that's not helpful. The CRTC plays a role as well.

This, on its own, is not going to help. It's going to create, as I tried to say, more mistrust, and it's not going to end well.

[Rachael Thomas, Conservative, Lethbridge, AB]

Thank you.

My first question here goes to Mr. Menzies.

First off, I just want to thank you so much for taking the time to be here with us today to shed light on this piece of legislation.

In April, you wrote an article about Bill C-18. You said:

...this is legislation that was initiated at the request of poverty-stricken newspaper publishers and wound up being, to put it kindly, the world's most audacious attempt to pick the deep pockets of online entities.

We often hear the government justify exerting more control over the Canadian media in order to create a level playing field. In your opinion, I would be curious as to whether or not Bill C-18 actually creates a level playing field. Or does it pick winners and losers? What would your response be to that?

[Peter Julian, NDP, New Westminster—Burnaby, BC]

Thank you. I certainly appreciate that.

I note that with those four community newspaper associations, that represents more than half of all the Conservative members of Parliament. I certainly hope they take that under advisement as well.

My question is for Ms. Ille.

Other committee members have highlighted the importance of APTN, the Aboriginal Peoples Television Network, and of the quality of their shows. I have had the honour on several occasions of being on APTN's shows to discuss issues such as housing and reconciliation. The network offers tremendous quality, and you do fantastic work.

That being said, do you feel that the issues around indigenous people and indigenous communities are fully outlined in Bill C-18, or would you like to see amendments and improvements that ensure that not only APTN but also other indigenous broadcasters and indigenous publications...that there are going to be the supports we're all hoping for to bolster that sector?

[Peter Julian, NDP, New Westminster—Burnaby, BC]

Would it be fair to say that all three community newspaper associations—we certainly heard from the Quebec Community Newspapers Association as well—are in favour of Bill C-18, if there is a guarantee that there will be supports going to the local level and that we have a similar outcome to what happened with Country Press Australia, where 150 community newspapers were supported through that fund?

[Caroline Desbiens, Bloc, Beauport—Côte-de-Beaupré—Île d’Orléans—Charlevoix, QC]

Thank you.

I now turn to Mr. Ashfield, whose situation is most interesting.

In my riding, Beauport—Côte-de-Beaupré—Île d'Orléans—Charlevoix, there are many small local newspapers that have less than two full-time journalists on staff. I think that small newspapers are important because, as Mr. Ashfield stated earlier, they publish news on a more local scale, news that is relevant and meets residents' needs.

Can you tell us about the very real threats that will loom for this type of business if they are not included in Bill C‑18?

[Caroline Desbiens, Bloc, Beauport—Côte-de-Beaupré—Île d’Orléans—Charlevoix, QC]

Thank you for your answer. That helps me to understand things a bit better.

It is obvious that we are not able to establish the financial impact that Bill C‑18 will have. However, would you be able to tell the committee that you are fairly certain that you will reap substantial benefits?

[Monika Ille]

Thank you so much for your kind words for the Aboriginal Peoples Television Network. I am most proud. We acknowledge them with pleasure.

It goes without question that we support Bill C‑18.

APTN needs money. Our network is included in basic cable packages, but we need more funds, just like everyone else.

I know that our news content is well received and becoming more and more popular. Over the last year and a half, we realized that people were accessing more and more of our news on our website, www.aptn.ca, or on Facebook. They are doing so in order to get an indigenous perspective on news items that are about indigenous peoples.

As to how APTN will benefit from Bill C‑18, the answer is we don't know. We don't have an agreement in place at the moment and we have not been contacted on the matter. We still don't know if we will be able to negotiate such an agreement. I find that the necessary information that would allow me to answer your question is lacking.

However, the way that the bill has been written does not lead me to believe that indigenous media is being given a prominent spot. I think this is extremely regrettable, especially given the efforts made to pass Bill C‑11, which now recognizes indigenous media. It would be wonderful if Bill C‑18 also recognized indigenous media and was more inclusive of Indigenous peoples rather than merely mentioning at the end that indigenous points of view should be taken into account.

[Caroline Desbiens, Bloc, Beauport—Côte-de-Beaupré—Île d’Orléans—Charlevoix, QC]

Thank you, Madam Chair.

I would like to say hello to everyone this morning. I am honoured to be replacing my excellent colleague, Martin Champoux.

Thank you to all our witnesses. Your testimony is always relevant and extremely useful. It is a pleasure to hear your points of view which will help us in our work.

My question is for Ms. Ille, the chief executive officer of APTN. Ms. Ille, I would like to congratulate you yet again on the quality of your network's productions and your immeasurable contribution to our understanding of indigenous topics. This also increases Canadians' and Quebeckers' knowledge, and I am grateful.

You mentioned earlier that Bill C‑18 will also have an impact on broadcasters. That is interesting. The content that you produce is of a wide-ranging nature. Your images, your messages and your content could therefore be found on the platforms of the Internet giants. Actually, this is already happening.

What impact could Bill C‑18 have on your organization's total budget? Would you see an increase in funds? Could you give us an idea of the amount and tell us how this would help you in terms of content quality and your organization's development?

[Lisa Hepfner, Liberal, Hamilton Mountain, ON]

We've heard a couple of times even today that Bill C-18 would affect journalistic independence somehow, that the government would somehow have more influence on news publishers, or Facebook and Google might have some power to direct news operations.

Can you speak to that? From my perspective it's actually the opposite, because this is a bill in which news producers negotiate directly with the tech giants. Government and the tech giants are left out of it. It's purely a business decision.

Can you go into that a little bit?

[Peter Menzies]

I do. In terms of Bill C-18, the fact that it directs any money from this commercial agreement to have to go to news is certainly well intended, but if this is a commercial transaction between two willing parties, what business does the CRTC or the government have, for that matter, saying how it will be spent? If a news company wants to spend it on new computer equipment or they want to paint the newsroom, they should be free to do that.

The other thing is that the CRTC tends to get bound into certain subject areas that it prefers and it is, again with good intentions perhaps, supposed to promote. If you look at the CBC's recent licence renewal, you can see that in terms of certain designated groups that it's supposed to promote.

All of those have good intentions, but you could end up with companies wishing to please the CRTC or the CRTC feeling pressure to make sure money in newsrooms is spent on certain topics, and they might be good topics, but it's frankly none of their business to have.... An independent press spends its money on whatever it wants.

[John Nater, Conservative, Perth—Wellington, ON]

Thank you, Madam Chair.

Thank you to our witnesses for joining us here today. I thought that was a good swath of information presented by each of the six individuals and organizations represented on today's panel.

I want to start with Mr. Menzies appearing here today.

Mr. Menzies, I see that you're wearing your orange shirt. I would note that at the Royal Saskatchewan Museum, the sales from those shirts, I believe, go to the traditional knowledge-keepers program that's operated at the Royal Saskatchewan Museum. I want to note that and the good work that's being done there.

I want to turn to your expertise—30 years in newspapers, 10 years with the CRTC—and it's that CRTC angle that I want to touch on. You appeared before us on Bill C-11. You talked to some of the unintended consequences that might happen with Bill C-11. I'm wondering if you have similar concerns about Bill C-18, some of the unintended consequences that may flow from a bill such as Bill C-18.

[Chris Ashfield, President, Saskatchewan Weekly Newspapers Association]

Thank you for giving us the opportunity to appear before the committee today.

Here's a bit of background. I'm a fourth-generation newspaper publisher and the publisher of five community newspapers in southeast and south central Saskatchewan, the oldest of which has been publishing since 1893.

In the more than 100 years that my family has been involved in the newspaper industry, never has it been under such peril. Yes, there have been moments throughout history that challenged our industry, but nothing like we are seeing today.

Steve and I are here today speaking on behalf of the Saskatchewan Weekly Newspapers Association, SWNA. However, the issues are similar in all three Prairie newspaper associations—AWNA, SWNA and MCNA—that represent almost all community newspapers in Alberta, Saskatchewan and Manitoba. That's approximately 200 publications. Our memberships range from small, independent ownership to titles owned by Canada's largest newspaper publishers.

Protecting public interest journalism is critical, probably even more so for our smaller remote and rural communities. The importance of locally generated journalism cannot be underestimated. In western Canada—we are sure it is the same in all rural and remote parts of Canada—it is the local newspaper that protects democracy and reports on the current affairs of the community it serves. It is also important to point out that the community newspapers are, in most cases, the only record of history for most of these communities.

Today, we have come to advocate on behalf of the independent newspapers across the Prairies. We believe that it's important to have a good understanding of the existential crisis facing small, independent community newspaper publishers, and that Bill C-18, the preferred solution for large publishers, may do little to address the financial distress of small publishers. Just like Canada's largest media companies, they too have seen the advertising revenues that once supported their newsrooms steadily diminish as revenues get displaced by digital platforms that focus on target marketing strategy. These are primarily Google and Facebook, now known as Meta.

It is important to understand that we do not believe there's a single solution for media, whether it be community newspapers, mainstream media or legacy media, as some have been labelled. We may all do journalism, but our business models are widely different and based completely on what best serves our individual communities, particularly when you consider the challenges presented by the digital revolution.

It is easy to charge that media has failed to transition to digital platforms. It's exceedingly difficult to pull that off in markets of less than national or global scale. In other words, what may work for The Globe and Mail with its national audience is not going to work for most community publishers. They simply do not have the scale or the population to generate much, or any, revenue in the digital world modelled on using clicks. A clicks and eyeballs method of sustainability will not work for small community media.

We cannot overemphasize how serious the situation has become for community journalism. Advertising revenues have declined to the point where most community newspaper publishers are operating with a skeleton staff, leaving the publisher-owner to absorb the extra hours in workloads themselves.

The quality of journalism is suffering because the revenues are no longer there to pay sustainable wages to our reporting journalists. Pandemic supports made the difference between life and death for many publishers at the time. However, they have now been scaled back or eliminated completely, while advertising revenues remain severely depressed. Communities are on the verge of losing their newspapers and with them the coverage of their municipal councils, school boards, sports and cultural events and all the independent local news coverage residents have relied on for decades.

With respect to Bill C-18, we are encouraged by the success of a similar bill in Australia, especially when it comes to the smaller community media. Community journalism is under threat with the digital revolution, yet there is no model for smaller communities to join that will maintain the level of community journalism that is required to protect local democracy and continue to record the history in hundreds of communities across the Prairies.

In closing, we insist that Bill C-18 include provisions that allow for a collective bargaining model for community newspapers, should they deem themselves unable to negotiate on their own.

Thank you.