Canadian regulator on Google’s Online News Act exemption

The Canadian Radio Television and Telecommunications Commission is seeking inputs on Google’s request for exemption from the Online News Act by August 6, 2024. This act outlines a framework for bargaining between news organizations and the platforms that make news content available. This framework ensures that platforms pay news organizations fairly for the news content.

To be exempt from the mandatory bargaining process, tech companies can enter into agreements with news publishers. Google entered into such an agreement with the Canadian Journalism Collective (CJC). A group of news organizations and broadcasters created the CJC to distribute funds allocated under the Online News Act. It is a federally incorporated non-profit organization.

Google will be making annual payments of $100 million Canadian Dollars to the news publishers as a part of its agreement with the CJC. The company says that it will make payments under this agreement only after it receives an exemption from the commission. 

What does the consultation examine?

Exemption criteria:

The current consultation examines whether Google has met the criteria for the exemption which include—

• Putting out a notice that allows eligible news publishers to seek compensation. News publishers must be provided with a period of 60 days to respond to this notice.
• Providing the commission with any information relevant to the exemption such as including a list of the news businesses that responded to the notice.
• The agreements that the company has entered into and the dollar value of any portion of the compensation that they provide for that.

Ways to further the goals of the act:

The commission mentions that it could further the objectives of the Online News Act if it were possible for new or growing news businesses, or for news businesses that are unable to respond to the notice, to receive compensation as well.  It suggests the following ways to accomplish its goals—

• limiting the length of the exemption order.
• Requiring Google to conduct periodic open calls. This would allow more news publishers could get compensation during the exemption period.

Timeline for payments to news publishers:

Tech companies must make payments to news publishers in a lump sum annually within 60 days of the exemption’s anniversary. For the first year, tech companies will split the payments between an initial $250,000 payment and a payment of the balance owing within 60 days of receiving an exemption order.

Google’s payment timeline remains unclear because the agreement would only take effect after the government grants an exemption. The Commission requires Google and the CJC to comment on the expected schedule of payments in relation to the day the commission grants the exemption and on the time period to which the payments apply. They must also mention the effect an interim order would have on the effective date of the agreement and the payment cycle.

Funding for participation in this consultation:

The commission says that helping public interest and consumer groups to recover the cost of participating in a consultation can encourage participation. It seeks inputs on whether it should require Google to provide funding for public interest participants in this proceeding as a condition of exemption.

Governance of the CJC:

There is very little information available on how the CJC will govern itself, distribute funds, or ensure that members comply with the obligations set under the agreement. Similarly, minimal information is available about how disputes between members, or between Google and the CJC, will be resolved.

While the agreement requires CJC to publicize certain details, this information will only be released after the exemption order. The commission however notes that without this information it would be unable to determine if Google’s agreement with the CJC satisfies the requirements of the Act and Regulations. As such, the commission asks CJC to comment on—

• The steps it will take to ensure that it acted independently of Google in negotiating and signing the agreement. 
• The steps taken to make sure that it acted in the interests of the news businesses that will receive compensation from the agreement. 

The commission also asks for comments on whether there is a need to impose additional conditions on the operation of the CJC before granting a final exemption order. 

Lessons from Australia’s News Media Bargaining Code:

Just like Canada, Australia introduced a code enabling news publishers to pay Australian news companies for their content in 2020. This code led to Google and Facebook (now Meta) entering a three-year agreement with News Corp Australia in 2021. This agreement included content from The Australian, news.com.au website, The Daily Telegraph, Herald Sun and The Courier-Mail. 

While a deal was reached with News Corp, Facebook was unwilling to pay all news platforms. It refused to negotiate with a range of small news organizations and two larger media organizations—The Conversation and the hybrid-funded public service outlet Special Broadcasting Service. This points to a concern that even if platforms reach an agreement with the bigger players, smaller platforms could still be left behind. 

As this deal came to a close in 2024, Facebook shut down its news tab in Australia citing declining interest. This shows that companies could make the choice to exit the news business in certain countries if required to pay publishers.

Why this matters in the Indian context:

Just like Canada, India has been contemplating whether there is a need for a revenue share agreement between big tech companies and news publishers. Former Minister of State for IT Rajeev Chandrasekhar said that the government is concerned about the asymmetry between news publishers and big tech, during the Digital News Publishers Association’s Conclave earlier this year. Chandrasekhar mentioned that any solution to this asymmetry would require public consultation. 

The Google/CJC agreement and its future implementation suggest that Google can be made to pay publishers. This could be a positive sign for regulators and news publishers in other countries that are looking to do the same. 

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