Media Revenue Sharing | The web giants will have six months to conclude agreements

(Ottawa) Facebook and Google will have six months after the adoption of the new law on revenue sharing with news media to reach agreements, failing which they will be forced to do so by an independent arbitrator under the supervision of the CRTC.

Posted at 9:34 a.m.
Updated at 1:55 p.m.

Mylene Crete

Mylene Crete
The Press

Canadian Heritage Minister Pablo Rodriguez tabled a bill Tuesday that will likely apply to both companies. The criteria for defining which platforms will be subject to it will be determined later by regulation, but they must essentially be dominant in the Canadian market.

“If we look at the 2020 revenues, there are two platforms that are in a dominant position, so Google and Facebook, he explained at a press conference. Why ? Because they get 80% of online revenue. Out of 10 billion, that’s huge. »

The minister expects the news media’s share of the pie to be $150 million to $200 million under the agreements they have reached. The six-month deadline could be extended up to 12 months in certain cases, the minister said without giving further details.

The law would not apply to news aggregators like Apple News, platforms already subject to the Broadcasting Act or at the Telecommunications Law like YouTube and Netflix or to private messaging services like Facebook Messenger and WhatsApp.

Newspapers and magazines, government-recognized online news companies, broadcasters that publish original online news content, whether public or private, which therefore includes CBC/Radio-Canada, will be able to enter into agreements with the web giants.

Foreign news companies could also benefit if they meet the government’s criteria for defining a news medium, either employing two or more journalists in Canada, producing content edited and designed here, being active in news production and not not produce too much content that promotes their interests or an organization.

However, the bill provides exemption criteria for web giants that have already signed agreements to share their revenues with enough media. They would not be forced into a mandatory negotiation and arbitration process. Facebook, for example, already has an agreement with the daily The duty.

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