Understanding Bill C-18: Canada's Online News Act and its proposed rules, explained

Canada's controversial Bill C-18 became law in June, requiring big tech companies to compensate media organizations if they want to continue to host Canadian news content on their platforms.

Both Google and Meta – the company behind Facebook and Instagram – initially stated that they will instead be blocking Canadian news from their platforms in response to the new law.

For Meta, this is now underway, with the company saying on Aug. 1 the changes "start today, and will be implemented…over the course of the next few weeks."

However, the Canadian government reached a deal with Google over the Online News Act in November. Under this deal, the tech giant will pay $100 million annually to news publishers and will continue to allow access to Canadian news content through its platform.

As of now, these are the only two platforms being eyed by the government's regulations, but that could change as other social media or search engines gain traction. 

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So, what does this bill, and the responses from the tech giants, actually mean for Canadians?

In brief, Meta has taken the position that it will eliminate access to news content on its platforms, rather than pay to host it, so Canadians may no longer see it appear on Facebook and Instagram.

Instead, audiences will have to seek news out directly from media organizations on their websites and apps, or on other platforms such as "X", since the content produced by Canadian news organizations will be blocked by Meta.

Google had initially threatened to block Canadian news from its Search and other products when the legislation came into effect on Dec. 19, but November's deal means that Canadian news will still appear in Google searches.

Here's everything you need to know about where this issue stands, as of Dec 19. 

What is Bill C-18?

Bill C-18, or the Online News Act, lays out a framework that would require digital giants Google and Meta to develop agreements with Canadian news sites to provide them with compensation for sharing their journalistic content that appears on their platforms.

This has been proposed by establishing a last-resort bargaining framework between platforms and media outlets, while incentivizing voluntary commercial agreements that can be reached independent of this act without forcing two sides to a negotiation table.

"It seeks to support balanced negotiations between the businesses that operate dominant digital news intermediaries and the businesses responsible for the news outlets that produce this news content, an explanatory note from the government says.

First presented in 2022, the legislation comes amid years of major declines in news ad revenue. The bill was based on a similar policy initiative in Australia called the News Media and Digital Platforms Mandatory Bargaining Code.

Australia's code enables eligible news businesses to bargain individually or collectively with digital platforms over payment for the inclusion of news on the platforms and services, according to the Australian Communications and Media Authority.

The federal government says the bill was passed in order to help the Canadian news industry, which has seen falling subscriptions and ad revenue over time as those profits shift to these companies.

According to an Angus Reid report released in July, 85 per cent of Canadians do not pay for any online news subscriptions and Canadians under the age of 64 usually check social media sites such as Facebook and Reddit first to get their news. Federal statistics indicate that while 69 per cent of Canadians access news online, just 11 per cent of Canadians pay for it.

While an earlier Parliamentary Budget Office estimate pegged that the bill would shift around $329 million to the Canadian news industry, the most recent figure being offered by the federal government is $234 million.

The overall compensation is still subject to change based on finalization and whether platforms come to the bargaining table.

When will the Online News Act be in effect?

The Online News Act came into effect on Dec. 19, 180 days after it received Royal Assent in June.

The federal government last updated the regulatory framework for the bill on Dec. 15, with the official final version set to be published on Dec. 20. This framework aims to provide what senior officials framed as the clarity platforms asked for around the implications of the new law.

Proposed regulations were first unveiled on Sept. 1, which kicked off consultations with key stakeholders on how the framework should be finalized.

According to the regulations as of Dec. 15, platforms will fall under the act if "there is a significant bargaining power imbalance between an operator and news businesses," defined by this criteria:

• They have a total global revenue of C$1 billion or more in a calendar year
• They operate a search engine or social media site, distributing and providing access to news content in Canada, with an average of at least 20 million unique visitors per month or an average of at least 20 million active users per month

Eligible platforms have 180 calendar days after the act comes into effect to notify the Canadian Radio-television and Telecommunications Commission (CRTC) upon meeting these criteria. Right now, only Meta's Facebook and Google are expected meet this threshold, but officials said they are keeping an eye on other platforms that may become eligible as they expand, naming the search engine Bing as an example.

The CRTC is also working on its own consultations around the mandatory bargaining process, the code of conduct to support fairness and transparency, the rules on undue preference or discrimination, and the eligibility of news businesses through their own separate regulatory process.

Can platforms apply for an exemption?

In short, yes. But that will come at a cost — one which Google has now agreed to pay.

Should Meta decide to play ball and want to restore news access, instead of pursuing Online News Act-based compensation negotiations with news organizations, they could propose other equivalent supports to the industry.

Under the current proposal, to obtain an exemption, platforms must "sufficiently" support the Canadian news marketplace.

This can happen through both monetary and non-monetary contributions such as training or traffic, but the overall compensation was previously estimated at needing to be equivalent to $172 million for Google and $62 million for Facebook (potentially more if Instagram is included) based on the government's proposed formula.

This equation is based on the tech giant's global revenues and Canada's estimated share of their global GDP.

November's deal will only see Google pay $100 million annually, money which will be distributed to eligible news businesses through a single collective. It will be indexed to inflation.

CBC/Radio-Canada will be eligible for no more than $7 million of the $100 million annual fund, while $30 million will be set aside for other broadcasters and the remaining $63 million will be split up among other news outlets, such as newspapers and digital platforms.

The government is suggesting that fair agreements for exemptions would be those that:

• are within 20 per cent of average relative journalist compensation
• commit to the production of news content
• protect journalistic independence and the editorial process
• include collectives of certain size representing independent local, Indigenous and official language minority community news businesses

Prior agreements between platforms and news businesses can be considered.

What's the latest reaction from the tech giants?

Upon the release of the proposed regulations, Meta was quick out of the gate to say what's been presented will not impact its decision to end news availability. In its view, the government's draft rules are based on a "fundamentally flawed premise."

"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," said Rachel Curran, head of public policy for Meta Canada, on Sept. 1.

Google had initially voiced concern about "serious structural issues with C-18" and called the bill a "link tax," saying that it "breaks the way the web and search engines have worked for more than 30 years," and may expose them to "uncapped financial liability."

According to Canadian Heritage Minister Pascale St-Onge, the deal struck in November addressed Google's concerns.

"We have found a path forward to answer Google's questions about their process and the act. Google wanted certainty about the amount of compensation it would have to pay to Canadian news outlets," St-Onge said at the time.

In response to Google's deal with the federal government, a Meta spokesperson told CTV News in an emailed statement in November that "unlike search engines, we do not proactively pull news from the internet to place in our users' feeds and we have long been clear that the only way we can reasonably comply with the Online News Act is by ending news availability for people in Canada."

Where will news be blocked?

Currently, content from Canadian news platforms is not visible on Facebook or Instagram for most Canadians.

Meta said Aug. 1 that the company had "begun the process of ending news availability in Canada," and that the changes will be implemented for all Canadian users of its social media platforms.

The news block includes links to news articles and video or audio posted by Canadian news outlets. Any links or other content will not be viewable by the public. News publishers outside of Canada will be able to continue to post, but their content will not be visible by Canadian users either.

During recent wildfire emergencies, Meta's refusal to pull back on this news pullout was widely condemned by political and community leaders.

How are news organizations impacted?

Publications that make the delivery of news their main focus are meant to be the beneficiaries of Bill C-18. Instead, "eligible news businesses" are having to find ways to go around the tech giants to distribute their journalism.

The definition of what counts as a news business according to the legislation is an "individual or entity that operates a news outlet in Canada," and a news outlet is any entity whose "primary purpose is to produce news content."

The legislation states that news businesses are considered eligible as long as they fall under certain requirements, including:

• producing news content of "public interest";
• employing two or more journalists in Canada;
• operating in Canada; and
• following the code of ethics of a recognized journalistic association or its own code of ethics that aligns with journalistic integrity.

An eligible news business also must produce news content "that is not primarily focused on a particular topic such as industry-specific news, sports, recreation, arts, lifestyle or entertainment," according to Bill C-18, suggesting that lifestyle magazines and similar publications may not be affected by Meta blocks.

CTV News, CP24 and BNN Bloomberg, which are all part of Bell Media and owned by parent company BCE, will be affected by the news block. In response, Bell Media has pulled all of its advertising from Meta.

How to access news amid Meta's ban

Canadians are still able to access Canadian news sources by navigating directly to their websites or mobile apps.

Signing up for newsletters or subscriptions is another way to stay up to date with the latest news directly from the sources that matter most to you.

Bookmarking your most frequently visited news websites now will allow you to navigate to them quickly even if their links are not being shared when you search a topic on Google.

Canadians will also still be able to see news from international and Canadian news sources through Google.

How do different parties, stakeholders view Bill C-18?

Supporters of the Liberal government's bill say that it is a way to keep tech giants in check and cut into their digital dominance.

As more than 400 Canadian newsrooms closed their doors between 2008 and 2023, supporters of a fair compensation plan say journalists should be remunerated for their work being used to help tech giants bring in more eyes and thus more ad revenue.

"Canadians rely on digital platforms to access their news and information, but these tech platforms have to act responsibly and support the news sharing they and Canadians both benefit from," said St-Onge in a Sept. 1 statement.

"The Online News Act requires these dominant platforms to bargain fairly with news businesses — both big and small… Tech giants can and must contribute their fair share — nothing more. Canadians expect a vibrant news landscape where we can get the facts when we need them," St-Onge said.

Prime Minister Justin Trudeau has previously said Meta and Google's "bullying tactics" will not work and that his government is trying to ensure those companies do not weaken Canada's democracy by threatening its media industry.

In the wake of the deal with Google, Trudeau slammed Meta for its decision to pull news instead of compensating news outlets.

"Unfortunately, Meta continues to complete abdicate any responsibility towards democratic institutions and even stability, but we're going to continue to work positively in those areas," he said in late November.

Even before the platform pullouts began, Bill C-18 prompted debate in Parliament and beyond.

Conservative Leader Pierre Poilievre has criticized the legislation as an attempt by Trudeau to "control the news Canadians see."

Reacting to the latest Meta move Aug. 1, the Official Opposition leader suggested "it's like 1984."

"You have a prime minister passing a law to make news articles disappear from the internet. Who would ever have imagined that in Canada, the federal government would pass laws banning people from effectively seeing the news?" he said.

"Whether it's big tech, or Trudeau's big government, censorship is always and everywhere, wrong."

Others have voiced concern that Google and Meta blocking news links from Canadian news sources will lead to a drop in media literacy.

Tech and cybersecurity expert Ritesh Kotak told CTV News Channel in late June that the removal of news from Google and Meta's platforms could lead users to rely on unverified stories, making "deciphering fact from fiction" that much more difficult.

"This is a serious problem for news organizations and also members of the public," he said, adding that news outlets should do more to promote their own platforms.

With files from The Canadian Press