Law will support media industry in ‘crisis’ and help fight fake news: minister

OTTAWA – Heritage Minister Pablo Rodriguez is moving forward with a bill requiring digital giants to pay Canadian media for the use of their content, not only to bolster the media, but also to counter fake news.

Speaking at a virtual future of news conference on Wednesday, Rodriguez said a new law the government is preparing will help preserve Canada’s independent media, which he says is starved of advertising revenue. and “in crisis”.

The Online News Bill will create a framework for news organizations to collectively negotiate fair deals with online platforms such as Google to compensate them for the use of their content.

The Minister of Heritage argued that action had to be taken because “the information sector in Canada is in crisis. And this contributes to the decadence of our society.

Since 2008, 451 Canadian news outlets have closed, including 64 since the start of the pandemic, he said.

“In 2020, online advertising revenue in Canada was nearly $10 billion, with two dominant digital platforms absorbing over 80% of that revenue. That’s an incredible amount of market power,” Rodriguez said.

The minister warned that the internet, although a popular source of information, had enabled more “misinformation and disinformation” than ever before. Protests in Ottawa and across Canada in recent weeks have provided compelling examples of fake news online, he said.

Rodriguez said a vibrant, professional and non-partisan media where reporters ask tough questions — which could prove uncomfortable for politicians — is essential to a thriving democracy.

He said a law recently introduced in Australia to level the playing field between tech companies and the media is working and Canada plans to use it as a model, with some modifications. He said the bill, which will be tabled soon, will keep the government at bay and the process transparent.

Canada would have a regulator and impose arbitration if a fair deal cannot be reached between Canadian media and companies like Google and Meta, formerly known as Facebook.

Rodriguez said the digital giants don’t want the law, although Google vice president of news Richard Gingras said the search engine doesn’t oppose regulation.

Gingras told the conference that Google is ready to “step up and do its part.” But he said it was important to “protect the open internet” and the principle of free linking between sites.

He said Google sends traffic to news sites worth about half a billion dollars a year.

He criticized the Australian law, saying its arbitration model was unbalanced and unpredictable and he hoped Canada would come up with a more workable plan.

Gingras, who has spoken with the government about their plans, raised the possibility of a fund to which the digital giants could contribute to support Canadian media, according to a formula.

John Boynton, vice-chairman of NordStar Capital, owner of the Toronto Star and dozens of other dailies and weeklies, said the Australian law had resulted in a huge injection of money into the media.

Not only has the Australian media stopped firing journalists, they now have the funds to start hiring them again, he said.

This report from The Canadian Press was first published on February 23, 2022.

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