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

[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.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Madam Speaker, 50 years ago there were metal boxes on city street corners where, for 25¢, one could buy a newspaper. Each box had a window showing the top half of the front page if it was a broadsheet and the whole page if it was a tabloid. If one wanted to read anything more, one had to put a quarter in the box and remove a copy of the paper. In our cities, it was common to find three or four such boxes for competing newspapers on the same corners of the downtown of any city. Those newspaper boxes are, for the most part, long gone as the nature of the news business has changed.

Home delivery, one of the mainstays of the newspaper industry, has declined drastically. These days, most people get their news online. The news industry has changed in how news is gathered and changed in how it is delivered to consumers. Gone are the days where most people subscribe to home delivery for the morning and the afternoon.

For those in the news media, the challenge has always been to provide a public service while ensuring sufficient revenue to continue their function. Canadian journalists and publishers have always risen to that challenge.

This is not the first time technology has upended the news industry. As television became popular in the 1950s, many feared the end of print publication or journalism. Newspapers survived the challenge posed by this new medium by concentrating on in-depth reporting, which television, with its constraints, could not do. Quality journalism was still possible back then.

One could say that Google and other search engines function today as the newspapers did in the 1970s. They show the headlines but not the whole story. They provide a link for people to click on. Facebook, the other online giant the Liberals seem to be most concerned about, does the same thing. Providing a link that allows people to access and use websites could be considered by some to be a public service or an aid to the news industry. If people want to read the full article, they have to follow the rules set by the news organizations that publish it.

In the early days of the Internet, many news organizations placed their material online free for anyone who wanted to read it. Most of those now allow limited access to non-subscribers. In some ways, one could argue that the news industry should be paying the tech companies for attracting readers to their articles or their content.

Facebook and Google sell advertising on their websites and have lots of advertisements. Perhaps some of that might have gone to other media in the past. Given the way the Liberals think, it is possible and only natural that the government wants to intervene in what would be a private commercial industry.

Canada's Conservatives believe that the Canadian news media should be fairly compensated for the use of its content by platforms like Google and Facebook. The issue here is how that should happen and what should be the role of government, if any, in the process.

Media companies could inform Google and Facebook that linking to their news sites is no longer allowed and that breaking that rule without permission would be a copyright violation. Media companies deserve compensation for their work, and some have negotiated agreements with the tech companies for the online use of their content, which has me wondering why government feels the need to intervene.

The government, which has in the past shown its willingness to give taxpayer dollars to the news industry, does not seem to understand the difference between public and private. One would think that a billion dollars a year to the CBC would be enough to exempt it from receiving more money under the bill, but it is not.

This is flawed legislation. It seems as if this government has taken a worthy idea, which ensures that Canada has a healthy, free and vibrant press, and brought in a bill for which the ramifications have not been considered.

Why is the CRTC being given oversight? Despite what some Liberals may think, the Internet is not broadcasting. Print media are definitely not broadcasters. Where is the logic in asking the CRTC to oversee something when it neither has the expertise or the resources to do so? Is this all about building a new bureaucracy? Indeed it is.

The online news act is supposed to protect the struggling Canadian news industry. How could anyone disagree with such a noble purpose? Would this bill solve any problems, or would it create new ones? How would fair compensation be determined? Who would be compensated under this act and who would be excluded? Why should a government agency be making such determinations?

The tech giants have widened the reach of Canada's news organizations by bringing their materials to the attention of the people who might not otherwise know of them. I am sure this increased audience has been beneficial to all sides. Mechanisms already exist through which media can be compensated by those using their materials. We have a Copyright Act. Some companies have come to an agreement with the tech giants, so why is more government needed?

There is no need for this bill, except that the Liberals love to meddle in things that do not concern them at all. What other areas does the government wish to shove itself into rather than letting companies work out their own agreements?

If these technology companies feel there is value in linking to Canadian news organizations, why can they not negotiate contracts without government interference? If Canadians are turning to these tech companies for news, then the companies need to find a way to provide content. Short of starting their own news organizations, which strikes me as an unlikely possibility, they have to turn to existing news organizations. If they find value there, they will pay for it. It is very simple.

This bill defines a news outlet as “an undertaking or any distinct part of an undertaking, such as a section of a newspaper, the primary purpose of which is to produce news content”. It is a very nice definition. Those words, however, do not reflect reality. This is a dispute about money, pure and simple.

Producing news content may be the goal of those in the newsroom, those seeking to produce quality journalism for the public good. It may even be why a given publication was first founded, but is not the reason for its existence. The reality is that news outlets, like the big tech companies, exist to make money. This bill is about who gets the biggest slice of the advertising pie, pure and simple.

If news organizations perform a service by keeping the public informed about important issues, that is, in many ways, only a by-product of the business. Those running news organizations are rarely, if ever, journalists themselves. If news organizations thought they could make as much or more money by publishing only chocolate cake recipes, they would do so. Let us not delude ourselves into thinking otherwise.

Bill C-18 is flawed and probably unnecessary legislation, which puts it in line with the rest of the current government's legislative agenda.

[Lisa Hepfner, Liberal, Hamilton Mountain, ON]

Madam Speaker, Edmonton was the place I had my start in journalism in 1998 at the Edmonton Journal, and at the time there were several newspapers in town, along with several radio stations and several TV stations, which were all producing news for the city of Edmonton. Over the past 20 years, the media landscape has really shrunk. There is not the same number of journalists out on the street reporting the news.

This is because of what the Public Policy Forum calls “vampire economics”. Facebook and Google take 85% of the funding that used to go to news for advertising. That now goes to Facebook and Google, and at the same time, they take the content produced by journalists and distribute it for free. What we have learned is that, yes, Facebook and Google are making deals with these outlets ahead of legislation similar to Bill C-18. They did it in Australia. They are doing it now in the U.S., and in Europe they are also considering similar legislation.

These are deals that are completely without government influence. They are business deals between organizations and Facebook or Google, so there is no government interference, and what we have learned is that Facebook and Google probably would not make these deals, if the legislation were not already on the table.

I am wondering if the member opposite agrees that it is a huge threat to our democracy to see this demise of journalism in our—

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

I apologize, but I do have to give time to the hon. member for Edmonton Manning to give an answer.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Madam Speaker, I thank the member for being such a good Edmontonian and congratulate her for coming this way.

She mentioned the change in the landscape in advertising and of newspapers. The hon. member said what I said in my speech, which is that it is about the money and how big a slice of the pie is going to be. If this is a business deal that has been done in the private sector, why should the government intervene now?

The twist toward the threat to democracy is a bit rich here. The Liberals know where the threats to democracy are, and I think they have been playing to that for the last seven years. I ask them to please spare us on that.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot, QC]

Madam Speaker, my riding has seven local media outlets: Le Clairon, Le Courrier, Boom FM, Journal Mobiles, Radio-Acton, La Voix de l'Est, and La Pensée. They all do an outstanding job.

It is, however, abundantly clear that local and regional news are dying. Philanthropy and subscriptions are no longer enough. We need to help them.

In the current context, we need them. We need them because local and regional news outlets showcase talent, happenings and current events.

In the current context, with a free market dominated by digital giants, that is no longer enough. Digital giants must contribute a portion of their profits to help local and regional media.

Why does our colleague still disagree?

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Madam Speaker, this is another twist. This world is full of competition, and big companies are there because they have all the tools needed to be a presence.

Most of us in the House and beyond use the services of Facebook, Google and others to advertise what we do and what we stand for, so I do not think there is anything in the bill to tell us where the money is going to go and whether the money is going to go to support those small local news outlets the hon. member mentioned. That is why the bill is about nothing. It is meaningless. It is about nothing, and it is unnecessary.

[Lori Idlout, NDP, Nunavut, NU]

Uqaqtittiji, the member talks about the slice of the pie. In 2020, big online web giants gained $9.7 billion in online advertising. That is the size of the pie we are talking about, and Google and Facebook benefited from 80% of that revenue. Because smaller online platforms such as Isuma TV and Nunavut TV do not have the same negotiability that Google and Facebook have, the bill is quite important to those smaller platforms.

Does the member not agree that those supports for those smaller platforms are needed to fight against big platforms such as Google and Facebook, which are making at least $9.7 billion a year in advertising revenue?

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Madam Speaker, basically, this bill does nothing to help these industries. Let us make sure we understand what is going on here. This bill does nothing. It is just a symbolic bill that would really do nothing.

If the small industry needs to be a presence, it needs to work on itself and needs to increase its activities in a proper business model.

That is what we support.

[Dan Mazier, Conservative, Dauphin—Swan River—Neepawa, MB]

Madam Speaker, I rise today to speak to Bill C-18.

The Internet is supposed to be a place where anyone, regardless of their wealth, status or background, can express themselves in a place free from excessive restrictions and regulations.

The Internet was designed to be open and free. It was supposed to be a place where one could contribute on one’s terms, where a business can grow on its terms, where society can learn, share and communicate on its terms, free from government overreach.

The absence of government intervention was one of the very reasons why the Internet flourished into what we know it is today, and few other inventions can be attributed to creating such a significant economic, social, and cultural growth as the Internet, but now the Liberal government has made it its priority to regulate the Internet in an unprecedented way.

The Prime Minister has decided to target the free and open Internet, and maybe for those very reasons. First, it was Bill C-10, then it was Bill C-11 and now it is Bill C-18. I believe that the expansion of the government will harm the principles of a healthy media environment for years to come.

When people hear about governments regulating the Internet, few think of Canada, and rightfully so.

At a time when inflation is reaching record highs, when the cost of gas and groceries continues to rise and when heating a home is becoming unaffordable, the Liberal government is fixated on Internet regulations. Maybe the Liberals hoped that Canadians were distracted by real-life pressures and would ignore the Internet regulations, or maybe they do not care about the real issues that Canadians are currently facing in their everyday life.

Here we are, debating another government bill to regulate the Internet. Bill C-18 would force online platforms to give away their revenues to news organizations who choose to upload their content to their platform. Canadians are rightfully skeptical when the government talks about wealth redistribution. Canadians are even more concerned when the government talks about wealth redistribution within the news and media industry.

A free and independent media is critical and important to our nation’s democracy. Whenever the government tries to intervene, elected officials should pay close attention. It is our job to thoroughly examine the consequences of any attempt to hand out money or change the rules for news and media in our country.

Canadians are still questioning the government’s $600-million media bailout, but now the government is trying to create a new revenue source for media with somebody else’s money. I must ask how we can maintain a free market if we indirectly subsidize companies by extracting the profits of their competitors.

It is important to note that no one is forcing news organizations to upload hyperlinks to online platforms. They are free to make this choice. Many publishers upload their content to platforms such as Facebook and Google to benefit themselves. It is no secret that more people are likely to read an article if it is uploaded online because it suddenly becomes more accessible to the public. When an article is uploaded to the Internet for the world to read, it breaks through those geographic walls that a print newspaper is restricted to.

Many writers across Canada have experienced incredible success because of their ability to upload content online. In fact, many publishers pay Google and Facebook to boost their content through ads. Without online platforms like Facebook and Google, many writers and independent news organizations would not exist today.

The Internet has provided a lot of opportunity for media companies who were previously unable to enter the market due to high barriers of entry. Members of the House should be proud of the positive outcomes that online platforms have created for content creators.

Not only is no one forcing news outlets to upload their content online, but also nothing is preventing them from negotiating individual contracts with online platforms. As of today, many news outlets have proactively entered business agreements with online platforms to progress mutual business needs without government intervention, as I heard in a previous speech here from my colleague.

We must also ask who will be eligible to receive the government-mandated shared revenue if Bill C-18 were to become law. The government claims that only legitimate news organizations will be eligible for these funds, but who does the government deem as a legitimate news organization? According to one of the government-written criteria in Bill C-18, a legitimate news organization must produce news “primarily focused on matters of general interest”.

However, I must further ask what the matters of general interest are and who determines them. I can assure members of the House that the general interests in rural Canada are different than in urban Canada, and general interests in Atlantic Canada are different than those in northern and western Canada. These are important questions that Canadians deserve the answers to.

Instead, the Liberals have left these important decisions to the CRTC, the same CRTC that is already bogged down in a mountain of responsibility from other Internet regulations that the government has initiated.

I should note that, if Bill C-18 passes, Canada's government-funded media outlet, the CBC, will be eligible for compensation. Members heard that right. There will be more money for the CBC. The Parliamentary Budget Officer reported that more than 75% of the money will go to the CBC, Rogers and Bell.

The government claims that Bill C-18 is to share the wealth of online platforms to smaller media outlets, such as newspapers. As an MP who proudly represents many small-town weekly newspapers, I understand that these businesses have experienced significant market pressures in recent history.

The reality is that most of the money redistributed by Bill C-18 will only go to the media giants, such as The Toronto Star and The Globe and Mail. They are the ones that have the most content online, and therefore, they will get the most money from this legislation.

Many local newspapers I represent do not even upload their content to online platforms. That means they would not see any of the money the government claims they will get. I wholeheartedly agree with local newspapers across this nation that are frustrated. However, Bill C-18 is not the silver bullet. In fact, many are warning that Bill C-18 would be detrimental to Canadian journalism.

At the beginning of my speech, I spoke about the importance of free and open Internet. It is a principle that I, and many Canadians, strongly believe in. However, Bill C-18 breaks the concept of a free and open Internet. Bill C-18 is bad for independent media, and it is bad for competition.

At a time when many Canadians believe the freedom to express oneself is threatened, the Liberal government continues down a path of unprecedented Internet regulation. It would be nice to see the government put as much effort into reducing Internet and cell phone bills as it is putting into regulating the Internet, but I digress.

I will end with a quote from Vinton Cerf, a founding father of the Internet. He stated, “if all of us...don't pay attention to what is going on, users worldwide will be at risk of losing the open and free Internet that has brought so much to so many and can bring so much more.” That is very true.

The Internet, a creation that was built on the principle of being open and free, is now threatened. We can either allow the government to expand its power over the Internet, or preserve the principles it was founded on. That is why I will be voting against Bill C-18.