Later today, the Canadian Heritage committee will continue its clause-by-clause review of Bill C-18, the Online News Act. The committee is virtually certain to expand the eligibility of news outlets, responding to concerns that the current criteria may exclude smaller, independent outlets from benefiting from the bill’s mandatory payment/arbitration system. However, earlier this week, just as the committee was hearing that the bill covers quotes with links to news content by users in Facebook posts, it quietly expanded the scope of the definition of “eligible news business” in a manner that opened the eligibility door to some organizations that may not even produce news content. As a result, the bill faces another potential trade challenge as it evolves into a straight subsidy model in which the bulk of the payments go from Internet companies to Canadian broadcasters with little regard for value or any notion of actually use of news content.

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