Three weeks before the Online News Act, also known as Bill C-18, takes effect, at a time when the media is in the midst of a crisis and positions are being eliminated almost every week, several wondered whether a deal was possible be.
Ottawa and Google agreed earlier this week on the final regulatory framework that will establish a contribution regime to support Canadian media, according to a government source familiar with the negotiations.
The total amount of the contribution that will be included in the regulation has yet to be officially determined. According to a CBC source, Google’s final contribution would be about $100 million per year. According to our information, the final amount is indexed annually.
A few weeks ago, Ottawa estimated that compensation should be $172 million. Instead, Google estimated the value of its bonds at $100 million.
It is important to have taken this first step with Google, emphasizes the source, who asked to remain anonymous because he was not authorized to speak publicly. This is another solution to ensure media viability and restore balance between commercial platforms.
Simplified negotiations
In addition to the scope of the financial requirements, Google last October expressed concern about what its spokesperson Shay Purdy described as critical structural problems in the Online News Act. The company refused to enter into a binding negotiation and arbitration model with Canadian press organizations, preferring to negotiate with a single point of contact.
The regulation would now enable a negotiation model with a single group representing all media outlets and could allow Google to limit arbitration risks.
This would have helped Ottawa allay the fears of the search engine giant, which threatened to block Canadian journalistic content on its platform.
He wanted to know how much it would cost and who he would have to negotiate with, the source explains.
The government-negotiated rules would be added to the legal framework, which must be presented by mid-December. Google would still have to negotiate with the media and sign an agreement.
The web giant could also add service contributions to be specified in the negotiations.
A bargain?
Given Google’s threat to stop distributing Canadian news, the government appears to have had to soften its positions.
However, the government source argues that an agreement in this context represents a first victory. A net win for the Canadian media in a very symbolic negotiation that will likely serve as an example elsewhere in the world.
Under the established criteria, Bill C-18 applies to digital platforms with 20 million unique monthly users and annual revenue of one billion dollars. Only Meta and Google meet these criteria.
Last summer, Meta ended its discussions with the federal government and stopped distributing Canadian news on its Facebook and Instagram platforms in August. The negotiations still appear to be stalled.