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| Connie L. Braun |
Conventional revenue models for newspapers and broadcasters have been completely disrupted. Sharp declines in advertising revenues for traditional media outlets meant there was an urgent need to find new revenue sources. Canadian news organizations began to question how tech giants could use their content without offering proportional compensation.
Learning from international legislative action
Experiences in other countries, where similar legislative measures were being considered or implemented, added to the conversation. International examples highlighted the necessity of creating a balanced framework that would protect both struggling news publishers and innovative digital platforms. Motivated by these challenges, Canadian legislators crafted the Online News Act (a.k.a. Bill C-18), enacted in June 2023, to ensure that digital platforms contributed fairly to the ecosystems from which they benefited. The Act represents a strategic effort to revitalize local journalism while fostering a competitive and innovative digital market.
The Act establishes frameworks where digital giants are expected to share revenue with Canadian news outlets whenever they use their content. This step is vital to support the financial sustainability of local journalism. Through mandated negotiations and regulatory oversight, the Act seeks to bring more clarity to how digital platforms operate with respect to sourcing and compensating Canadian media organizations.
With mechanisms that allow for periodic review and adaptability, the law aims to strengthen Canada’s media ecosystem in the face of rapid technological changes and evolving market dynamics.
Thinking out loud
Since taking office, Prime Minister Mark Carney has been thinking out loud about revising certain aspects of the Online News Act. Here are several aspects of the Act that the prime minister is mulling:
- Emphasizing the challenge of protecting Canadian journalism without placing undue burdens on digital platforms trying to establish a reasonable middle ground that promotes both innovation in the digital space and fair treatment for news organizations.
- Recognizing the fast-paced evolution of the digital landscape, pushing towards creating a more adaptable framework that would allow regulatory policies to be updated in line with ongoing technological and market trends.
- Advocating for broader consultations with both media companies and digital platform giants to refine the process and ensure that the revised framework addresses the concerns of all involved parties.
- Intending to align the Act more closely with international regulatory practices to facilitate cross-border discussions and streamline global digital content negotiations, benefiting both Canada and its international partners.
Lessons from international models
Australia was one of the first countries to implement a regulatory framework ensuring that digital platforms, tech giants like Google and Facebook, pay local news publishers for using their content. The News Media Bargaining Code mandates that when platforms use or display Australian news content, they must negotiate with media organizations to establish fair revenue-sharing agreements. Other nations are observing the Australian model as a blueprint for ensuring that news media receive appropriate compensation for their content.
Given the rapid pace of technological development, international frameworks often incorporate provisions for regular assessment and amendments. Regulatory practices, especially in Europe, call for greater transparency requiring digital platforms to detail how they find, identify and distribute news content. Enhanced disclosure provisions aim to provide both policymakers and the public with insight into these digital transactions, ensuring accountability on both sides.
With digital platforms operating on a global scale, questions of jurisdiction and regulatory harmonization have become paramount. International regulatory practices often involve cooperation among different countries’ authorities, aiming to create more consistent rules that can be enforced across borders. The EU’s Digital Services Act (DSA), enacted in February 2024, and the Digital Markets Act (DMA), enacted in September 2022, exemplify efforts to streamline digital regulation. These acts emphasize transparency, fairness and competitiveness. Although they address a wide array of issues, they also have significant implications for the treatment of news content on major online platforms.
International regulatory practices in the digital media space highlight a global effort to ensure fair compensation, enhance transparency and remain adaptable in the face of rapid technological change. While different countries have adopted various approaches, from Australia’s revenue-sharing model to the EU’s holistic digital governance framework, the common thread is the need to balance the interests of digital platforms and news publishers. As digital ecosystems continue to evolve, it is likely that further international collaboration and innovation in regulation will shape the future of digital media worldwide.
Implications and the road ahead
International regulatory practices in the digital media space reveal a global effort to secure fair compensation, enhance transparency and remain agile in the face of rapid technological change. While nations worldwide have taken diverse approaches, the shared goal remains an effort to strike a balance between the interests of digital platforms and news publishers.
For digital platforms, this may translate into the adoption of new operational protocols and heightened transparency. For news publishers, revised regulations could lead to improved revenue models and stronger negotiation positions. Canada’s approach, informed by international experiences, underscores a broader commitment to maintaining a balanced and innovative digital media ecosystem. Ongoing regulatory discussions will be pivotal in shaping the future of Canada’s media landscape, ensuring that progress and fairness go hand in hand.
Connie L. Braun is a product adoption and learning consultant with LexisNexis Canada.
The opinions expressed are those of the author(s) and do not necessarily reflect the views of the author’s firm, its clients, Law360 Canada, LexisNexis Canada or any of its or their respective affiliates. This article is for general information purposes and is neither intended to be nor should be taken as legal advice.
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