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

[Damien Kurek, Conservative, Battle River—Crowfoot, AB]

Madam Speaker, as always, it is an honour to enter into debate in this place and to talk about the important issues facing Canadians.

Madam Speaker, I would ask that I be given a little latitude here, as this will likely be the last time I stand in this place before we all break for Christmas, whether that be tomorrow or in the next couple of days. I would wish you and all members of this place, as well as all Canadians watching a very merry Christmas and many blessings in the new year.

Further, I also want to acknowledge the passing of one our colleagues, the late Hon. Jim Carr. I want to acknowledge his service to this country, his many years in this place. Although we have disagreements on many issues, it is at times like this where we see the true heart of Canadian democracy in looking back at one's legacy and one's record. Certainly on behalf of myself and the people of Battle River—Crowfoot, I would like to pass our condolences along to you and your colleagues, as well as the late Mr. Carr's constituents and family and friends, who I have no doubt are grieving his loss.

As we discuss the issue of Bill C-18, we see before us something that I would suggest is typical of the way the Liberals approach many aspects of government. We hear them making accusations about how the Conservatives are somehow supporting Facebook and other social media companies and their monopoly of the Internet. I would like to take a moment to refute that.

First, I have never heard anybody suggest that social media is overly favourable to Conservatives. I would like to unpack a little as to why the very foundation of this bill is problematic. I am going to unpack that to the very basis that assumes that a government agency, and in this case specifically the CRTC, should become intimately involved and exercise a great deal of authority over something which I think all Canadians, or certainly most Canadians I speak with, truly support and that is freedom of expression, freedom of the press and free expression on forums like the Internet, including social media.

One of the concerns that I have is that the very foundational elements of what is proposed here is to increase the size, scope and authority that an agency of government has. I would suggest that at the very foundation of what this bill is doing, that is deeply problematic.

It has been mentioned that Conservatives ran on a plan to ensure that big tech pays their fair share, and absolutely. However, when we look at Bill C-18 and what is included in this bill, we see that it misses the mark.

Instead of attempting to do what I think many Canadians actually support, the government instead simply increases the size of bureaucracy. As we have seen throughout the committee study, what the Liberals have said this bill would do and how much it would cost versus what the consequences of the bill could be and the actual cost are two different worlds.

Unfortunately, I do find this is par for the course for the Liberals who are great at making announcements, great at doing press releases and even writing preambles to bills. However, in many cases, when we look past the preamble, that is where the concerns and the problems are made very clear.

I am going to cut my speech a little short to ensure that some other colleagues have a chance to speak to this important bill.

I would simply highlight something that has been missing from the conversation, and that is rural voices. Specifically, I think it should be noted, as one of my colleagues did just a few minutes ago, that rural is missing out on the conversation. The biggest beneficiary of this bill would be the CBC. I have about 14 weekly newspapers, some of which do not even have a website, and local radio stations. There are small newspapers, family-owned businesses, and in some cases multi-generational operations that will not benefit from anything to do with this sort of bill.

At the very foundation, I find the bill flawed in how it would grant massive authority and jurisdiction to the CRTC, which has difficulty fulfilling its current mandate let alone a greatly expanded one. I look at almost anything this government touches, and the service outcomes of any department over the last seven years certainly have not been improved. Therefore, I hope members will forgive me for not trusting a massive expansion of the scope of an agency of the government. I find that deeply problematic.

To conclude, more bureaucracy and administration is not the solution. We need to see that freedom of the press is preserved and freedom of expression is preserved in this country. When it comes to ensuring that the big tech players in Canada pay their fair share, I fear this would create a bloated administration that falls far short of the mark that is required to actually deliver on what the objective was when the bill was first introduced.

With that, I will conclude a whole four minutes early and look forward to answering questions from my colleagues.

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

Before we go to questions and comments, it is my duty pursuant to Standing Order 38 to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Sherwood Park—Fort Saskatchewan, Democratic Institutions; the hon. member for St. Albert—Edmonton, Elections Canada; the hon. member for New Westminster—Burnaby, Health.

[Lisa Hepfner, Liberal, Hamilton Mountain, ON]

Madam Speaker, I wonder if the member has read the latest report from Australia, which has just reviewed its similar legislation one year in and found that journalism was supported. In fact, the smaller outlets in Australia did better in comparison to the larger organizations, and it has been a success. I am wondering why the member thinks it would be different in Canada.

[Damien Kurek, Conservative, Battle River—Crowfoot, AB]

Madam Speaker, I appreciate the question, but it comes down to the reality of what we are debating here today, which is not the Australian model but rather a Liberal proposal to give a massive increased mandate and authority to an agency of the Crown in this country that has a very poor track record in accomplishing the things the government already expects it to do.

Again, forgive me for suggesting that I have significant doubts as to whether or not the CRTC would be able to one, fulfill the mandate that is being suggested within the bill, and two, actually support journalists. The Parliamentary Budget Officer said that not only the cost would be more than double what the government estimated, but also that up to 75% of the revenue would not go to small, local and independent journalists. I am proud to have 14 independent weekly newspaper in my constituency. Rather, the revenue would go to the CBC, which is already funded to the tune of $1.2 billion.

This is not Australia. This is Canada. I think the Liberals should look very carefully before voting on their bill, which is based on something that is very different from what has been proposed, reported on and seen from the country of Australia on the other side of the planet.

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

Madam Speaker, I want to share a few statistics. Fully 98% of Facebook's total revenue comes from advertising sales; Google and Facebook take 80% of all digital ad spending; and Meta, the company that owns Facebook, generated $193 million in revenue in 2021, thanks to journalistic content, of course.

Meanwhile, let us remember that local and regional media are scraping to get by. However, we know that, if there were a framework that forced that revenue to be shared, then according to a 2020 News Media Canada report, publishers could recoup $620 million, which could support 700 journalists.

Let us also remember that, in Canada, Facebook earns 35 to 58 times more from media outlets than it pays them.

Is that not a clear imbalance and a gross injustice?

[Damien Kurek, Conservative, Battle River—Crowfoot, AB]

Madam Speaker, I would simply respond to that question by asking a question. Does the member trust the Prime Minister to actually fulfill the stated objectives that are outlined in the bill? Does the member trust the CRTC, a federal Crown agency, to actually fulfill the stated objectives in the bill?

When I look at what the bill is stated to accomplish versus what is outlined in the substance of the bill versus the testimony that we heard in committee that casts significant doubt on whether it would be able to do so, there are oceans of difference between those three things. To me, that suggests it would be deeply problematic.

It is a laudable objective; however, we see a deeply problematic follow-through on the part of the government. I would urge the member to consider carefully whether or not he would entrust the CRTC with that much authority.

[Lori Idlout, NDP, Nunavut, NU]

Uqaqtittiji, I lived in a time when major cuts were made to the CBC, and I saw the impacts that had on my community in Nunavut. In Nunavut, the CBC is the only provider that consistently and reliably provides broadcasting in Inuktitut.

I wonder if the member could share with us whether he agrees that my community deserves to get some of the lion's share of revenue, so that more indigenous languages can be broadcast through the CBC in other parts of the country.

[Damien Kurek, Conservative, Battle River—Crowfoot, AB]

Madam Speaker, I would suggest that the bill does not accomplish what the member asked me if I would support. Yes, I absolutely support indigenous languages having coverage. In fact, I have found it deeply problematic that while the CBC has not faced cuts, it has cut service. I think it highlights a great discrepancy that exists here in terms of what this bill is purported to accomplish versus what will take place.

I agree with the member for Nunavut. There needs to be support for small, local stations, whether they be radio, newspaper or whatever the case may be.

When I read through the bill, the testimony and what the bill is purported to accomplish, the bill purely and simply does not do that justice.

Simply put, would the member trust the Prime Minister to accomplish those objectives, when the framework proposed in Bill C-18 simply does not exist?

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

Madam Speaker, it is an honour to rise and speak in the House once again.

Before I begin, I also want to take a moment to offer my sincere condolences to the family of Jim Carr, the hon. member who passed away, as well as to his colleagues in the Liberal caucus who have worked with him over the years. I want to offer my thoughts and prayers to everyone.

When I decided to run for office in southern Saskatchewan, one of the driving principles for me and generally a lot of people in Saskatchewan was to see less government interference overall in our lives. That is one of the interesting elements in this bill, that it provides an opportunity to have less government interference in people's lives. That is the opportunity that exists with the bill. That is what we are going to get to as we get through the rest of this debate. As the bill has come through committee, we see how some of the interventions at committee reflect that.

Generally, a government bureaucrat in a distant office does not know what is best for individuals in a family given that family's own unique circumstances, so responsibility for those people should be left to the individuals and not to the government.

Usually, when there is a discussion about smaller government in Canada or somewhere else, it has to do with issues of expanding state power, which directly or indirectly restricts people's lives further. This results in less freedom, either because there are fewer options and choices available to make, or because sometimes it gets to the point of trying to plan citizens' lives for them. In this case, the problem with interference is not so obvious when we compare it to something like the situation in George Orwell's 1984, or maybe the other lurking threat that is another government bill, Bill C-11. It got a lot more negative attention in its previous iteration as Bill C-10, and later passed in this Parliament as Bill C-11.

The Liberals want to hand over way too much power to the CRTC with this bill, Bill C-18, which we are debating tonight. The Conservatives stood with the people and policy experts to make our opposition absolutely clear.

When the same Liberal government with the troubling history of Bill C-11 introduces yet another Internet bill, it is reasonable for Canadians to look at it with a healthy dose of skepticism. However, the problem with government does not always come from control or overreach; sometimes it seems friendly and tries to help out with something good, but it can still create problems despite the best intentions. Unfortunately, although what we saw with this bill when it was first drafted was an honest attempt to support small media outlets, it has turned into a large bill that needlessly grows the size of government institutions.

The CRTC already wields a great deal of power in regulating the Internet and the dissemination of information, and now the government wants to further add to it. Should it have the power to determine who is considered a journalist, or the eligibility of a news agency, which is part of the process of this bill?

It does not end there. The CRTC can resolve disputes and issue penalties. As part of that, the bill allows it to set mandatory terms to which both parties, news outlets and platforms, must agree.

What is perhaps most concerning of all is that the CRTC would have the authority to demand information from these platforms and news outlets whenever it pleases.

At the end of the day, Bill C-18 is inflating the size of the CRTC and giving it enormous power, with little accountability, to regulate the news all of us view. This begs the question: What are the impacts of doing this? An important part of a free society is having an independent press and free speech to hold our leaders accountable, but how much can we trust the Liberals to maintain these things? If the government and the Prime Minister want to talk as much as they do about defending democracy and promoting diversity around the world, they need to take these things seriously when it comes to our own country.

Sadly, over the last year they have damaged their national reputation with respect to these values by abusing emergency powers and allowing vulnerable Canadians, including veterans, for example, to be offered death instead of the help they need. They have undermined our freedoms and respect for human dignity.

My fellow Conservatives and I have spoken a lot about the danger of censorship. I also say that I understand the importance of small media organizations and their place in the local communities, because I represent a very large rural riding. To this day, many still rely on these small media organizations to inform them of the happenings both locally and on the global stage, and rural Canada is better off because of it.

There are many of them in my riding, and they all play an essential role. For instance, the Southwest Booster, which is located in Swift Current, has been producing a weekly paper since 1969. We also have the Prairie Post, which covers both southern Saskatchewan and southern Alberta. North of Swift Current, for example, in the small town of Kyle, we also have the Kyle Times, which has been operating for a number of years. Up in the northwest corner of the riding we have papers like Your West Central Voice and the Kindersley Social, both providing a unique perspective on what is happening in their communities.

Cypress Hills—Grasslands is also home to The Shaunavon Standard, which was founded back in 1913, along with the Maple Creek & Southwest Advance Times and the Maple Creek News, which provide a weekly newspaper and distribute it in the southwest corner. In the eastern half of my constituency, we also find many papers such as the Gravelbourg Tribune, The Herald and the Assiniboia Times. All these papers contribute greatly to the social fabric that we find in rural Canada. In a place where most people do not have access to reliable Internet, these papers are critical to keeping my constituents informed.

However, through the transition into a digital world, these organizations have had to adapt and provide their service online. Before the Internet, papers like the ones I mentioned used a physical newsstand or post office boxes to promote themselves, but today, with the Internet, search engines like Google are the updated newsstands. With Bill C-18 the government is trying to interfere with this updated newsstand, and is going too far in doing so.

In this discussion, we also need to talk about the existing government support for media and how we can fix this framework. As I said, having an independent press is fundamental. However, when our media are receiving multi-million dollar payouts from the federal government, their independence quickly comes into question. The common saying, “Never bite the hand that feeds you,” exists for a reason, and I believe it applies to this situation.

Let us be honest: The job of the media is at times to bite, to seek for answers, to find the truth and to hold those in power to account. However, they cannot fully do this when they know it may impact their subsidy. Many Canadians have seen a subtle shift in the private corporate media, with its reporting starting to resemble that of the CBC, which, as a state broadcaster, receives over $1 billion directly from the government. Because of that relationship, the question is raised as to how much the organization can operate like a PR firm of the federal government. That is why we have previously called for reviewing its funding and mandate.

Having said all this, my concerns with Bill C-18 do not stop with media independence and the newly proposed powers of the CRTC, but extend also to the current government's attempt to interfere in a free market. Bill C-18 would require search engines like Google to pay a royalty to an organization that is putting out information, but the government claims this is only minimal market intervention.

Earlier in my speech I talked about many of the small newsprint operations that we have in southwestern Saskatchewan. Here in the House, we have many former members of the press or journalists or those who have been news anchors or different things over the years. I would submit that the majority, if not all the organizations they worked for, would not receive a penny from any of the funds that would be raised by doing this.

First, the government would allow media outlets and organizations to reach a deal on their own. However, if they failed to do this, the CRTC would force both parties into a binding arbitration process whereby the government would get to set the terms of the deal. If an outlet and the organization reached a deal on their own, but the CRTC officials felt the outlet was not using the money appropriately, they would say the deal was invalid and force the two parties through the arbitration process.

They cannot call this “minimal market intervention” when they are giving an institution the power to force two organizations into a binding arbitration process as well as the power to apply hefty fines. A thing is not market-based when the government needs to step in and force two companies to make a deal or face a large fine from the government if they fail to make a deal.

While the government should aim to support small media outlets, protecting their independence should be front of mind. The implications of Bill C-18 are too far-reaching, and with the lack of guidelines there is great potential for the government to abuse this process. That is why we have opposed this bill and will continue to do so.

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

Madam Speaker, I find the Conservative Party interesting. I understand the Conservatives actually had an election platform issue on which all the Conservative candidates were saying they supported what is taking place in Australia and the Australians' approach to dealing with it. That is the approach this bill is a reflection of. Therefore, it seems to me that the members of the Conservative Party are saying, once again, that even though they would have made the commitment to do something, they obviously met with someone. Something has caused them to change their minds. Now they do not believe government should play a role in Google search engines or Facebook. They are saying we should just have trust in Google and Facebook, because they will work it out with all the other media outlets.

Why did the Conservative Party once again abandon an election platform? Is it the change in leadership? Is it the so-called new direction that the Conservatives are taking? Why did they abandon that policy commitment to Canadians?

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

Madam Speaker, our party is not beholden to Facebook, and we are not beholden to Google. We do not take our marching orders from big corporations like that. We are not listening to special-interest lobby groups and informing our policy decisions based on that. Too often, we see that from the Liberal side of the aisle.

As I outlined in my speech, this is talking about our small-town news and print media. Quite often they are the best at providing the most up-to-date local, relevant information that people want to see and hear. They do appropriate and proper journalism.

What we are seeing from many of these large organizations is basically government-subsidized opinions. That is not what Canadian taxpayers want. What they want is to see better respect for the taxpayer dollar, but also to have media outlets that are going to provide them with true, accurate and reliable journalism. That is what our small-town papers do. They are the ones that are going to be left out, and the bill would do nothing to help those people.

[Andréanne Larouche, Bloc, Shefford, QC]

Madam Speaker, I thank my colleague for his speech.

As this is very likely the last time I will rise to speak in 2022, I want to offer my condolences to the friends and family of the Hon. Jim Carr. I also want to wish everyone happy holidays, including you, Madam Speaker.

That being said, my colleague spoke a lot about the importance of local media. As I said before, representatives from the local newspapers La Voix de l'Est, La Pensée de Bagot and the Journal de Chambly, and even Radio M105, a great community radio station that is celebrating its 25th anniversary this year, all came to see me to say that legislation was required and action absolutely needed to be taken.

The Liberals have invested a lot in ads on GAFAM and other platforms, and the Conservatives are pushing for a form of libertarianism on social media and with GAFAM. This goes against the importance of news reporting that respects a code and aligns with what journalism should be. Journalism is about providing information on local current events and reporting real news, not disinformation.

What does my colleague think about the importance of local media for democracy and for a healthy news ecosystem?

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

Madam Speaker, the member is absolutely right. We talk about our local news media or our local papers, and maybe someone is fortunate enough to have a local TV station. The local news media that is present in Quebec is obviously going to provide the local news and perspective for Quebec, and the local news media in Saskatchewan is going to provide our perspective, but when we see a bill like this, it is not going to boost and enrich the ability of the organizations to do what they are going to do. We are hearing the government say it is absolutely going to do that, but the reality is we always see that it is our small towns and our rural and remote communities that have people who have a diminished voice in this country. They are the ones who are always the first to lose out. They are the first ones to be eliminated because of decisions like this that are made.

We need to support and promote our small-town papers and our small-town TV and radio stations. The bill would not do that.

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

Madam Speaker, my colleague from Cypress Hills—Grasslands made an impassioned defence of this idea of unbridled deregulation. I find it somewhat questionable, because when giant corporations form monopolies we see that many of the impacts on Canadian society are negative ones.

Does he not agree that the federal government, and governments of all sizes, have a role in limiting the negative impacts of monopolies in our country and in our economy?

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

Madam Speaker, we definitely do not want to see monopolies. Right now one of the biggest monopolies in the country is the amount of tax dollars that the CBC receives. I think the money the CBC receives could be better utilized and allocated to other means, and we have a good platform of what to do with the over billion dollars that heads in that direction.