Bill C-18, the Online News Act, is best known for two things: the government’s bad bet that Meta was bluffing when it said it would block news links in response to a system that mandated payments for links (news links have now been blocked for 10 months in Canada) and its attempt to salvage the legislation by striking a deal with Google worth $100 million annually. The Google deal has receded into the background, but the behind the scenes there is an intense battle over who will be selected to administer and allocate the annual $100 million. The outcome – which will be decided by Google by June 17th – will have enormous implications for Canadian media for years to come since it is anticipated that Google and the selected collective will negotiate a five year deal worth $500 million. Sources say that two proposals have emerged: a big media consortium led by News Media Canada (NMC), the Canadian Association of Broadcasters (CAB), and the CBC, pitted against a proposal spearheaded by a group of independent and digital publishers and broadcasters that is promising a more transparent and equitable governance approach.
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Bill C-18 is Dead, Long Live Bill C-18: Government Rewrites Online News Act With Final Regulations
The government this morning released the final Online News Act regulations, effectively gutting the law in order to convince Google to refrain from blocking news links in Canada and to fix some of the legislative mistakes that have been apparent from the start. While proponents of the law will point to the $100 million contribution from Google as evidence of success, privately most in the industry and government acknowledge the obvious: Bill C-18 was deeply flawed and a massive miscalculation that has created far more harm than good. Canadian Heritage Minister Pascale St-Onge seemingly agrees as she was willing to make changes that were derided by the government throughout the legislative process. Indeed, by the time St-Onge took over the file that was a challenging salvage job, Meta’s $20 million in news deals were lost and blocked news links on Facebook and Instagram was a reality. The prospect of the same happening with Google was too much for the industry and the government since the lost deals would have been at least double that amount (many believe in the $40-50 million range) and lost news links in search would have been catastrophic.
The Law Bytes Podcast, Episode 187: Jeff Elgie on What the Bill C-18 Deal With Google Means for the Future of the Canadian News Sector
The Canadian government tried to salvage the Online News Act last week as its struck a deal with Google that will bring in $100 million to support the news sector and remove concerns about blocked news links. The government had to overhaul its own law in order to reach the agreement, tossing aside most of the core elements in favour of a fund-style single payment from Google. The reaction to the agreement from the news sector has been mixed at best with relative silence from many supporters and outright opposition from the likes of Torstar.
So what to make the of the deal and what comes next? Jeff Elgie is the CEO of Village Media, one of the largest independent, digital-only news outlets in Canada. He joins the Law Bytes podcast to walk though his participation in the process, reaction to the agreement, and thoughts for the future.
Episode 187: Jeff Elgie on What the Bill C-18 Deal with Google Means for the Future of the Canadian News Sector
The Canadian government tried to salvage the Online News Act last week as its struck a deal with Google that will bring in $100 million to support the news sector and remove concerns about blocked news links. The government had to overhaul its own law in order to reach the […]
Skillful Negotiation or Legislative Fail? Taking Stock of the Bill C-18 Deal With Google
Canadian Heritage Minister Pascale St-Onge’s deal with Google on Bill C-18 for an annual $100 million contribution has sparked some unsurprising crowing from partisans who insist the fears that the government had mishandled the Online News Act failed to recognize a well-executed negotiation strategy. Yet the response from industry supporters of the bill has been noticeably muted: News Media Canada did not issue a press release with CEO Paul Deegan noting that the impact would depend on the forthcoming regulations, the Canadian Association of Broadcasters said it was relieved there was a deal and that links would not be blocked, Quebec broadcasters are already calling for more support, and Friends of Canadian Broadcasting said the deal did not deliver the support it originally hoped for. These comments come closer to reflecting the reality of the deal, namely that the government misread the market, passed deeply flawed legislation, and was ultimately forced to row back core elements of the law and accept payments consistent with what was on the table over a year ago.
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