The federal government has put a price tag on how much it would like to see Google and Facebook spend under legislation that requires the tech giants to compensate media companies for Canadian journalism.
Federal officials estimate Google would need to offer $172 million and Facebook $62 million in annual compensation to satisfy criteria they're proposing be used to give exemptions under the Online News Act, a bill passed over the summer that will force tech companies to broker deals with media companies whose work they link to or repurpose.
Draft regulations released by the government Friday outlined for the first time how it proposes to level the playing field between Big Tech and Canada's news media sector, and which companies it will apply to.
"The goal of it is to make sure that those that benefit the most from the Canadian market fall under the bill," newly minted Heritage Minister Pascale St-Onge said in an interview after the proposal's release.
The government said companies will fall under the legislation if they have a total global revenue of $1 billion or more in a calendar year, "operate in a search engine or social media market distributing and providing access to news content in Canada" and have 20 million or more Canadian average monthly unique visitors or average monthly active users.
For now, Google and Meta's Facebook are the only companies to meet the criteria, though officials said Microsoft's Bing search engine is the next closest to falling under the act.
Veronica Langvee, head of communications for Microsoft in Canada, said the company "intends to comply with the legislation as it applies to our products."
Instagram and Threads won't be captured by the proposed legislation because they have yet to reach 20 million or more monthly Canadian users, officials added.
"We know how technology evolves or how the market changes, sometimes at a rapid pace, and we want to make sure that this bill is relevant in five and 10 years," St-Onge said.
Companies meeting the criteria can receive an exemption from the act if they already contribute an amount laid out by a government formula to Canadian journalism.
The formula is based on the tech company's global revenues and Canada's share of global GDP. The government believes the calculation will deliver a contribution that is within 20 per cent of the earnings of full-time journalists working in a Canadian news organization.
Companies would be able to satisfy the criteria with both monetary and non-monetary compensation. While the draft does not specify what non-monetary contributions would count, officials said training and advertising could wind up meeting criteria.
The draft regulations will be subject to a further 30-day consultation, but Facebook and Instagram parent company Meta, which blocked news on its platforms in anticipation of the law coming into effect at the end of the year, immediately expressed its disappointment with the proposal.
The draft is based around a "fundamentally flawed premise," said Rachel Curran, head of public policy at Meta Canada.
"As the legislation is based on the incorrect assertion that Meta benefits unfairly from the news content shared on our platforms, today's proposed regulations will not impact our business decision to end news availability in Canada," she said in a statement.
Google, which St-Onge has painted as more co-operative than Meta, has also threatened to pull Canadian news from its offerings.
"We're carefully reviewing the proposed regulations to assess whether they resolve the serious structural issues with C-18 that regrettably were not dealt with during the legislative process," Google spokesperson Shay Purdy said in response to the draft.
The two companies have long lobbied against the legislation, with Meta claiming news is a tiny fraction of its business and removing it would result in little revenue loss for the social networking giant.
Google's president of global affairs Kent Walker, meanwhile, has said the legislation "exposes us to uncapped financial liability" and claimed the company being targeted just because it shows links to news, "something that everyone else does for free."
But St-Onge maintained the legislation is a "reasonable and predictable path forward for both media platforms and newsrooms.
"This is what we have said that we do," she said. "I think we delivered on finding a way forward that should please everyone."
The government said it is pushing forward with the act because Google and Meta have a combined 80-per-cent share of the $14 billion in online ad revenue seen in the country in 2022.
At the same time, news outlets have seen their advertising revenues shrink, forcing layoffs, a loss of media coverage in small and rural communities and 474 closures of Canadian news businesses between 2008 and 2023.
The government says 69 per cent of Canadians access news online but only 11 per cent pay for it.
After Meta made good on its threats to remove Canadian news, the federal government pulled $10 million in annual advertising spend from Meta's platforms. News and telecommunications businesses Quebecor, Bell Media, Torstar Corp., Cogeco, and Postmedia Network Canada Corp. replicated the move.
Paul Deegan, president and chief executive of News Media Canada, praised St-Onge's deft approach to the "tricky" issue and was pleased it provided "clarity and predictability."
"No regulatory framework is ever perfect, but clearly she has strived to be extremely fair and balanced to all stakeholders, he said in an email.
"This is something everyone acting in good faith should be able to live with."
This report by The Canadian Press was first published Sept. 1, 2023.
CTV News is a division of Bell Media, which is part of BCE Inc.
State-sponsored actors targeted security devices used by governments around the world, according to technology firm Cisco Systems, which said the network devices are coveted intrusion points by spies.
It's one thing to say you like Taylor Swift and her music, but don't blame CNN's AJ Willingham's when she says she just 'oesn't get' the global phenomenom.
Students protesting the Israel-Hamas war at at universities across U.S., some of whom have clashed with police in riot gear, dug in Saturday and vowed to keep their demonstrations going, while several school faculties condemned university presidents who have called in law enforcement to remove protesters.
A Sherwood Park family says their new house is uninhabitable. The McNaughton's say they were forced to leave the house after living there for only a week because contaminants inside made it difficult to breathe.
A loud explosion was heard across Hamilton on Friday after a propane tank was accidentally destroyed and detonated at a local scrap metal yard, police say.
More than 115 people who viewed the solar eclipse in Ontario earlier this month experienced eye damage after the event, according to eye doctors in the province.
A man has been handed a lengthy hunting ban and fined thousands of dollars for illegally killing a grizzly bear, B.C. conservation officers say.
Although it's still unclear how much damage Robert F. Kennedy Jr.'s candidacy can do to either Joe Biden or Donald Trump this election, Washington political columnist Eric Ham says what is clear is both sides recognize the potential threat.
Ottawa has plans to finally stop blocking Canadian development aid to Afghanistan this year.
J.T. Miller had a goal and assist and the Vancouver Canucks edged the Nashville Predators 2-1 to re-take the lead in their first-round playoff series.
The 36-year-old killed on Highway 5 this week has been identified as Juver Balmore, a husband and father of three young children who worked for CN Rail.
A fire that displaced three families from a townhouse complex in Surrey's Newton neighbourhood Friday afternoon is considered suspicious, local Mounties say.
Ontario is now home to an invasive and toxic worm species that can grow up to three feet long and can be dangerous to small animals and pets.
More than 115 people who viewed the solar eclipse in Ontario earlier this month experienced eye damage after the event, according to eye doctors in the province.
A loud explosion was heard across Hamilton on Friday after a propane tank was accidentally destroyed and detonated at a local scrap metal yard, police say.
Calgary police took two people into custody on Friday after a stabbing in the community of Haysboro.
If you've spent any amount of time scrolling TikTok at 3 a.m. (it's OK -- we all have), you probably know the meme...
It will warm up tomorrow, but it will also be gusty at times.
Though the temperatures are warm, the capital is going to have a rainy Saturday starting this afternoon.
Excitement is brewing for PWHL Ottawa's final home game of the regular season Saturday afternoon at TD Place. Following a close win Wednesday against Boston, Ottawa players were hard at work Friday morning prepping for the upcoming match against Montreal.
Ontario Provincial Police are asking for the public's help in locating a missing man from Newfoundland who disappeared in eastern Ontario.
Montreal comic book artists Ben and Ray Lai claim Marvel and Disney are abusing the legal process in the Lai brothers' copyright infringement suit against the industry giants.
The office of Quebec Housing Minister France-Élaine Duranceau prefers to openly ignore journalists' requests.
A couple is breathing a sigh of relief after winning the right to stay in their Verdun apartment.
A cat that jumped from the balcony of a burning building in downtown Edmonton on Thursday afternoon will make a full recovery, building officials say.
A bill that would empower the Alberta government to remove elected municipal officials or strike down local bylaws is an "attack on local democracy," says the capital city's mayor.
As if a 4-0 Edmonton Oilers lead in Game 1 of their playoff series with the Los Angeles Kings wasn't good enough, what was announced at Rogers Place during the next TV timeout nearly blew the roof off the downtown arena.
A girl and a boy, both 14 years old, made their first appearance today in a Halifax courtroom, where they each face a second-degree murder charge in the stabbing death of a 16-year-old high school student.
Cape Breton Regional Police found a dead body in Sydney, N.S., Thursday evening.
A popular chef, who is fighting a battle against an aggressive form of cancer, is getting support from her community.
The trial for the man accused of killing four Indigenous women in Winnipeg is set to get underway on April 29.
Nathan MacKinnon and Valeri Nichushkin scored on the power play during a five-goal, third-period outburst and the Colorado Avalanche rallied for a 6-2 victory over the Winnipeg Jets in Game 3 on Friday night.
Parents in Gimli who rely on child care before and after school are sounding the alarm over policy changes coming in September.
RCMP have identified 28-year-old Brianna Hayes from Oxbow, Sask. as the victim in an ongoing homicide investigation in the province’s southeast. As a result, police have charged 24-year-old Taylor Japp, also from Oxbow with second degree murder, an RCMP news release said.
Youth in Yorkton can now access a new Lego Therapy program in their community through SaskAbilities.
A Regina police officer was injured after another officer's gun was accidentally fired while conducting a search warrant early Friday morning.
More than a year has passed since the City of Kitchener announced it was pausing community consultations on the future of the Queen Victoria statue in Victoria Park, and there is still no timeline for a resumption of the process.
An investor with ties to apartment buildings across Ontario appears to be connected to 250 Frederick Street in Kitchener.
Ontario’s Minister of Economic Investment, Job Creation and Trade says a number of companies have shown interest in a tract of land the Region of Waterloo is trying to assemble in Wilmot Township.
Over six months after Saskatchewan's government announced a significant $90 million investment in social services, the initiative is reportedly making progress.
The Saskatoon Police Service (SPS) and Saskatchewan Coroners Service are investigating after a woman’s body was found at a recycling facility Friday morning.
Four people, including two teen girls, were arrested and charged after an attempted armed robbery on Thursday evening.
Two hunters from North Bay, Ont., and a third from Temagami pled guilty recently to offences they committed during a 2022 moose hunt.
The Ontario Provincial Police (OPP) says it's investigating an interaction between a uniformed officer and anti-Trudeau government protestors after a video circulated on social media.
Ontario Provincial Police responding to a disturbance in West Nipissing this week discovered a conscious person lying in the street.
In case you missed it, CTV News London has compiled all the top local stories from this week into one video for your convenience.
Efforts at city hall to get reimbursed by the federal government for costs incurred by asylum seekers might be too late.
Police said they were called to a weapons-related incident on Morning Glory Drive around 1:30 p.m. Friday.
One person killed in multi-vehicle crash in Innisfil on Friday.
With its Innisfil location’s lease set to expire within the next five years, Gateway Casinos is eyeing a plan to move.
The Ontario Provincial Police (OPP) says it's investigating an interaction between a uniformed officer and anti-Trudeau government protestors after a video circulated on social media.
All the excitement of the NFL Draft has officially descended upon Detroit, with Windsor welcoming the spillover.
A ribbon cutting to celebrate the opening of a new grief support centre on Baseline Road in Windsor marked a bittersweet moment for many at Julien’s House Friday morning.
Windsor police have arrested two people after seizing $120,000 in illegal drugs.
The B.C. NDP has asked the federal government to recriminalize public drug use, marking a major shift in the province's approach to addressing the deadly overdose crisis.
Saanich council will be discussing a report Monday prepared by Saanich Fire Chief Michael Kaye on the merits of amalgamating the fire departments of Victoria, Oak Bay, Esquimalt and Saanich.
When Art Kinarthy embarked upon this quest, he never could have imagined where it would ultimately lead.
An emaciated dachshund is now recovering thanks to a Good Samaritan who found the pup near a biking trail in Kelowna, according to the BC SPCA.
Search and rescue crews have been called in after a vehicle belonging to a missing senior was located near a rural intersection outside of Kelowna Tuesday.
Major crime detectives in British Columbia are investigating a suspected homicide after a body was found in a remote area southeast Kelowna over the weekend.
An Alberta political scientist said the NDP leadership hopefuls remained fairly even following the first of the party’s debates.
It was a busy Wednesday evening for fire crews in Lethbridge County after multiple grass fires were sparked near the Kipp rail yard.
A former University of Lethbridge student has been awarded the Medal for Diversity, Equity, Inclusion and Equity by NASA.
The City of Sault Ste. Marie is looking for community input on some design concepts for the waterfront.
Meeting next week, city council in Sault Ste. Marie will get an overview of what to expect if it decides to implement a new tax on empty homes in the city.
Two hunters from North Bay, Ont., and a third from Temagami pled guilty recently to offences they committed during a 2022 moose hunt.
Legendary sportscaster Bob Cole was a Newfoundlander through and through, and his daughter says his connection to the province was 'everything' to him.
Cenovus Energy has been ordered to pay a $2.5-million fine for its role in the largest offshore oil spill ever recorded in Newfoundland and Labrador.
As more Canadians find themselves struggling to afford or find housing, the country's smallest province is the only one that can point to legislation recognizing housing as a human right.
As if a 4-0 Edmonton Oilers lead in Game 1 of their playoff series with the Los Angeles Kings wasn't good enough, what was announced at Rogers Place during the next TV timeout nearly blew the roof off the downtown arena.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
A property tax bill is perplexing a small townhouse community in Fergus, Ont.
When identical twin sisters Kim and Michelle Krezonoski were invited to compete against some of the world’s most elite female runners at last week’s Boston Marathon, they were in disbelief.
The giant stone statues guarding the Lions Gate Bridge have been dressed in custom Vancouver Canucks jerseys as the NHL playoffs get underway.
A local Oilers fan is hoping to see his team cut through the postseason, so he can cut his hair.
A family from Laval, Que. is looking for answers... and their father's body. He died on vacation in Cuba and authorities sent someone else's body back to Canada.
A former educational assistant is calling attention to the rising violence in Alberta's classrooms.
The federal government says its plan to increase taxes on capital gains is aimed at wealthy Canadians to achieve “tax fairness.”
Ottawa has plans to finally stop blocking Canadian development aid to Afghanistan this year.
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
The federal government is earmarking $3 million for production of drones in Ukraine in support of Kyiv's fight against Russia's invasion.
A Sherwood Park family says their new house is uninhabitable. The McNaughton's say they were forced to leave the house after living there for only a week because contaminants inside made it difficult to breathe.
Breast cancer rates are rising in Canada among women in their 20s, 30s and 40s, according to research by the University of Ottawa (uOttawa).
More than 115 people who viewed the solar eclipse in Ontario earlier this month experienced eye damage after the event, according to eye doctors in the province.
State-sponsored actors targeted security devices used by governments around the world, according to technology firm Cisco Systems, which said the network devices are coveted intrusion points by spies.
TikTok is in the crosshairs of authorities in the U.S., where a new law threatens a nationwide ban unless its China-based parent ByteDance divests. Here are the places that have partial or total bans on TikTok.
The Hubble Space Telescope has captured a stunning new image of the glowing gas ejected from a dying star, which in this case happens to resemble a 'cosmic dumbbell.'
It's one thing to say you like Taylor Swift and her music, but don't blame CNN's AJ Willingham's when she says she just 'oesn't get' the global phenomenom.
Lawyers for Sean "Diddy" Combs pushed back against a woman's lawsuit that accused him of sexual assault, filing a motion on Friday to dismiss some claims that were not under law when the alleged incident occurred.
When Art Kinarthy embarked upon this quest, he never could have imagined where it would ultimately lead.
The federal and Quebec governments are spending close to $100 million to boost the country's manufacturing capacity for semiconductors, which are vital in technologies ranging from artificial intelligence to quantum computing.
The number of vacant jobs in Canada increased in February, while monthly payroll employment decreased in food services, manufacturing, and retail trade, among other sectors.
Ford’s electric vehicle unit reported that losses soared in the first quarter to US $1.3 billion, or US$132,000 for each of the 10,000 vehicles it sold in the first three months of the year.
Take an illustrated look back at the culinary history of Winnipeg.
An idyllic 453-acre private island is up for sale off the west coast of Scotland and it comes with sandy beaches, puffins galore, seven houses, a pub, a helipad and a flock of black-faced sheep.
During a special winner celebration near their hometown, Doug and Enid shared the story of how they discovered they were holding a Lotto Max ticket worth $70 million and how they kept this huge secret for so long.
As if a 4-0 Edmonton Oilers lead in Game 1 of their playoff series with the Los Angeles Kings wasn't good enough, what was announced at Rogers Place during the next TV timeout nearly blew the roof off the downtown arena.
Maple Leafs winger William Nylander appears on course to suit up for the first time in this spring's Stanley Cup playoffs.
Philadelphia 76ers All-Star centre Joel Embiid has been diagnosed with Bell’s palsy, a form of facial paralysis he says has affected him since before the play-in tournament.
An Ontario man who took out a loan to pay for auto repairs said his car was repossessed after he missed two payments.
Ford’s electric vehicle unit reported that losses soared in the first quarter to US $1.3 billion, or US$132,000 for each of the 10,000 vehicles it sold in the first three months of the year.
Honda is set to build an electric vehicle battery plant next to its Alliston, Ont., assembly plant, which it is retooling to produce fully electric vehicles, all part of a $15-billion project that is expected to include up to $5 billion in public money.
The Shopping Trends team is independent of the journalists at CTV News. We may earn a commission when you use our links to shop. Read about us.
