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.

Online News Act

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Alexandra Mendes]

I congratulate the hon. member on her wedding.

Questions and comments, the hon. parliamentary secretary to the government House leader.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Madam Speaker, to add to your comment, I congratulate the member on her marriage. I wish her many years of wonderfulness.

The issue before us today is about the reality that the Conservatives do not believe, as they are showing in their actions, that the tech giants, from Google and search engines to social media giants like Facebook, should have to pay into any sort of pool that would enable fairer compensation for creators here in Canada. This issue is having a devastating impact on journalism, and the member even made reference to it closing down.

Does the Conservative Party not recognize that the message it is sending to these giants is that they do not need to make changes? The Conservatives might say there is a need for changes, but when it comes down to voting, they are going to be voting against this legislation. They might have some issues with it, but at least it would enable a fairer playing field for our journalists.

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Madam Speaker, unfortunately, no, I do not believe the bill would do what its purpose intends.

Let us be clear: Facebook, Meta and Google have publicly said they are willing to donate funds that could be split up among smaller local news media. That would involve no government bureaucracy. It would mean the government is not picking who can be in and out. There would be nobody saying something is a violation of freedom of the press or freedom of the Internet. That could still happen, and my recommendation to the government is that it ought to happen.

That being said, I certainly do not think Bill C-18 in its current form would do anything more than give the nests of CBC, Bell and Rogers more money.

[Martin Champoux, Bloc, Drummond, QC]

Madam Speaker, I, in turn, congratulate our colleague from Sarnia—Lambton for Saturday's happy occasion. I wish her many years of wedded bliss.

I heard my colleague express some concerns about the eligibility of news businesses. I just want to distinguish between Bill C‑21, which we have also been hearing a lot about, and Bill C‑18. Unlike the first bill, in Bill C‑18, the government did not include a list of businesses that are excluded or included.

On the contrary, the bill has a list of criteria that businesses must meet to be eligible. This clause was improved by an amendment that requires eligible businesses to also follow a code of ethics based on fundamental principles of the journalism profession.

I want to know if my colleague, who voted against this amendment with her Conservative colleagues, believes that this amendment actually guarantees that eligible businesses will be serious, rigorous news businesses. I would like to hear what she has to say about that.

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Madam Speaker, I absolutely agree with the idea that organizations must have a code of conduct. However, I think with this amendment, the problem was with students and other individuals who do not follow the same rules. I moved a subamendment, but it was defeated. I think there is a bit of a problem there.

[Taylor Bachrach, NDP, Skeena—Bulkley Valley, BC]

Madam Speaker, I hope members will humour me so I can take this opportunity to wish my daughter Ella a very happy 18th birthday.

In addition to that, I would like to congratulate my friend from Sarnia—Lambton on her recent marriage.

On the topic before us, my local newspaper reached out to me very early on in this process and expressed its support for this concept, because it believes, as many Canadians do, that the enterprises that create content should be compensated when that content is syndicated.

Is this not a worthy goal? I would ask my friend from Sarnia—Lambton why so many of the amendments the Conservatives brought forward seemed to side with the web giants like Meta and Facebook.

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Madam Speaker, what is clear is that we want to keep the Internet free and we do not want the government choosing what needs to be done there. To do that, the best thing to do is get rid of Bill C-18 and allow the tech giants to fund something that small media outlets could themselves divide.

[Kevin Waugh, Conservative, Saskatoon—Grasswood, SK]

Madam Speaker, right off the top, I want to state the Conservatives agree that Meta, Facebook and Google should pay. I keep hearing the Liberals, NDP and Bloc say that the Conservatives do not believe that. We do. I will talk about it in my speech, because we do believe that Meta and Google should pay. As for what they are going to pay, let us find out, because there is a big difference between what the government thinks publishers are going to get and what the PBO thinks is going to be available.

Bill C-18 came out of committee just last Friday, and this week I think we are going to see its quick passage. I really enjoyed the intent of the bill when it came out. When it was first introduced over a year ago, I loved it. It was all about helping local media. I was part of that media back in Saskatoon for years on the television side. However, Bill C-18 was about local newspapers then. That was the objective of Bill C-18 when it was first introduced over a year ago.

Our Conservative team then invited Saskatchewan and Alberta newspaper associations to testify at committee. We need Meta, Facebook and Google to pay for news. I have stated that. However, what we heard from Steve Nixon, executive director of the Saskatchewan Weekly Newspapers Association, was that the bill needed to include one-person operations to really make an impact on saving the news industry in Saskatchewan. Steve Nixon mentioned in committee that only four or five operations are going to be eligible in Saskatchewan. Through amendments, those with one and a half people and over will get money from Meta and Google. We wanted it at one, but we did not get that in committee.

Dennis Merrell of the Alberta Weekly Newspapers Association said that only 50% of Alberta weeklies would qualify for money under Bill C-18. There are one-person newsrooms in Alberta, but they do not count. They would get no money out of this bill. Two people are needed to qualify.

The bill had all the right intent to preserve rural reporting of news, yet we did not get there. Unfortunately, the bill was hijacked early with the lobbying of the CBC, Bell Media and Rogers. They found a way to convince the Liberal government that they needed more money.

Many already made deals with Meta and Google before we even started in committee. This was kind of funny, because Colin McKay, representing Google, came to committee and admitted it already had 150 publishers signed up. Those with the ability to make the deals beforehand have made the deals. They saw what happened in Australia, so they made deals before the bill was even introduced, and they get the first cut of the money.

How much did these agreements go for? We do not know and probably will never know. Torstar, The Globe and Mail, National Post, Le Devoir and others have made one-off agreements with the tech giants. The little guys, whom I feel for, are left to defend for themselves. They may have to join others to negotiate. If not, they are done and will close.

We agree with Kevin Desjardins, president of Canadian Association of Broadcasters, who said there will be winners and losers with Bill C-18. It did not have to be this way, but I would say before we got started on this bill, it was all decided beforehand.

I believe, as the Conservatives believe, that the CBC should not be involved at all in Bill C-18. The CBC is already funded by the taxpayers of this country to the tune of $1.2 billion, yet the government, in the fall economic update, gave it another $42 million, with $21 million to deal with this year and another free $21 million to deal with next year.

Let us level the playing field. How do we do that when the public broadcaster already gets $1.2 billion and an additional $42 million? We can say we are going to level the playing field, but tell that to rural Manitoba. Tell that to rural Saskatchewan, Alberta or even Ontario, where they are trying every day to make payrolls.

The Parliamentary Budget Officer estimated that the public and private broadcasters would get $248 million of the $329 million paid out annually through this bill. It is possible that the CBC will be the single biggest winner. Why should that happen? As I said earlier, it gets more than enough funding through the taxpayers of this country.

An interesting note is that heritage department officials came up last week with the number that they thought Meta and Google would pay newspapers and those involved in Bill C-18. Their number was $150 million, which kind of surprised me a bit because the Parliamentary Budget Officer, a long time ago, said there was going to be a pot of $329 million. However, 75% of the $329 million will go to CBC, Rogers and Bell. The little guys will fight over the rest.

Unfortunately, these local newspapers are struggling now, and the national players have already lined up and made their agreements with Meta and Google. With the one-horse show we are seeing in rural Canada, too bad for local newspapers. They thought they were going to get help in Bill C-18 because the Liberals talked about it a year ago, saying this is a bill for newspapers. However, it turned out to be anything but.

Instead of looking through the classifieds, we know that everyone goes to social media. People sell their furniture on Facebook Marketplace. Companies put jobs on LinkedIn. Service classifieds go to sites like Craigslist. It has all changed; we see it. Papers have always made their money through the classifieds, but that no longer happens.

Then there is the concern about subscriptions. They are getting cancelled because everyone wants free stuff and they are getting it for free online right now with Facebook, Google and so on.

Finally, there is advertising. The Liberal Party of Canada spent $4 million on Facebook. It could have helped rural Canadian newspapers instead of spending that on Meta last year. The federal government spends a lot of money on Facebook, Google and so on.

Local papers used to be a primary target for government advertising and information about government programs. Years ago, they got some advertising and it helped them a lot. However, they got very little this time. When the COVID-19 Emergency Response Act was passed by the government, it gave most of the money to the big boys, such as Facebook, Google and so on. Much of the traffic does not go to the local newspapers now.

We have heard from industry on more than one occasion, both large and small outlets, that the government simply does not advertise as it used to. It does not make its way down to the local newspapers or outlets in any meaningful way. Instead, the government has turned more and more to online advertising on social media.

I heard about the issue when the government was advertising the COVID relief programs. Most of the money went to the big tech conglomerates, which is a bad outcome for local news. Many papers across this country have been forced to close up, leaving a void in their communities.

I am especially worried about the archives when a newspaper closes in a community. Where do the archives of that newspaper go? We should all be concerned about Canadian heritage. When a newspaper closes its doors, so does the history of a community. It is not replaced by Facebook and it is not replaced by Google. That should concern everybody in this country.

We heard testimony from department officials that funding is only afforded to the outlets with one and a half journalists or more. Many of these outlets will be left behind to perish. This is tough because we had a newspaper in Davidson, Saskatchewan, that sold for one dollar. It is still operating. Two years ago, it sold for one dollar and it is still producing local news in the Davidson area today. I feel that many of the papers in rural Canada will sell for one dollar, but the problem is that instead of selling, they are going to close their doors for good.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Madam Speaker, listening to the member or, in particular, the Conservative member who spoke prior to him, one gets the impression that the Conservatives have an answer.

Instead of voting in favour of the legislation or instead of recognizing that the CRTC has an incredible history of serving Canadians and ensuring there is Canadian content and a much higher sense of fairness overall, the Conservative Party's approach seems to be not to worry. We should have trust and confidence in Facebook and in Google search, and they will come up with agreements with the different community media outlets. I do not have that trust and confidence that the member seems to have or the Conservative Party seems to have.

Does the member not recognize that it is only the Conservative Party inside this chamber that seems to have that trust? Could it be that its trust might be misplaced?

[Kevin Waugh, Conservative, Saskatoon—Grasswood, SK]

Madam Speaker, the parliamentary secretary should know that the CRTC has never regulated newspapers in this country. It has only dealt with television and radio. Now we are going to ask an agency to look after newspapers. The CRTC will decide who is going to win and who is going to lose. Ian Scott, the chairman, is leaving next month, so there will be a new five-year appointment coming up.

Is the CRTC capable today of regulating? We all know the answer already. It has difficulty in broadcasting. Can it afford to make the same mistakes that it made with broadcasting that I think it will make in the newspaper sector in which it has no background at all?

[Andréanne Larouche, Bloc, Shefford, QC]

Madam Speaker, I thank my colleague for his speech on this important issue, Bill C‑18.

I sense that he is concerned about the issue of local and regional media, and I share that concern. I have had the opportunity to talk to people in the media back home who have told me to do something, but we clearly continue to have concerns about Bill C‑18.

Nevertheless, should we not help our local media by moving forward with Bill C‑18 and making sure that our small media outlets are really covered by this plan? The other option is to do nothing at all, slow down Bill C‑18 and throw the door wide open to the libertarian model embraced by GAFAM and their ilk. Should we not make sure they are fully covered by the bill?

[Kevin Waugh, Conservative, Saskatoon—Grasswood, SK]

Madam Speaker, I am concerned. I said that right off the top. When Bill C-18 was introduced over a year ago, the bill was designed to help local newspapers in this country. Now we find out when we peel back the onion that public broadcaster CBC, Rogers and Bell, are going to get 75% of the funding from Meta and Google. Why are they at the trough?

We dealt with Bill C-10 and Bill C-11 before, which pertained to those industries. Bill C-18 was designed for newspapers, as we have found out with the department saying only $150 million will be raised. Is it $150 million, or what the PBO said is a bigger pot of $239 million?

[Heather McPherson, NDP, Edmonton Strathcona, AB]

Madam Speaker, I worked very closely with my colleague at the heritage committee in the last Parliament.

I know the member. I know he believes strongly in Canadian media. I know he fights for Canadian media. However, I do have concerns with some of the messaging that we are seeing from the Conservative Party. During debate on Bill C-10, as an example, I heard one of his colleagues say that every single time he gets to send out an email to his constituents about Bill C-10, he makes about $1,600.

My worry is whether the Conservative Party is taking this opportunity to fundraise or taking this opportunity to misinform Canadians for their own benefit, rather than actually trying to find productive solutions to fixing some of the problems that our media faces in this country.

[Kevin Waugh, Conservative, Saskatoon—Grasswood, SK]

Madam Speaker, a number of us in the House support local newspapers in this country. I would say 250 out of the 337 of us now, since yesterday, sponsor local newspapers with ads.

You are shaking your head, Madam Speaker. Are you are not one who puts an ad in a newspaper? I am sure the member for Edmonton Strathcona is one of them, because she knows the importance of local media, especially around Edmonton.

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Alexandra Mendes]

The member is out of time, but I was actually referring to the fact that we lost a colleague yesterday.

Resuming debate, the hon. member for Edmonton Manning.