Government moves to consult public on how to make Big Tech pay for news – National Post

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Having failed to find consensus from stakeholders, one critic says Ottawa is now using 'delay tactic' ahead of upcoming election call

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The Liberal government is asking for public input on how to force digital platforms to compensate Canadian news outlets, a move that comes as news industry representatives urge the government to move quickly on legislation.

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Daniel Bernhard, executive director of the advocacy group Friends of Canadian Broadcasting, criticized the new consultation as a delay tactic. I think that the government is trying to remind voters in the runup to an election that they are taking this issue seriously, he said.

Publishers in Canada and around the world have been calling for governments to force Big Tech to compensate them for news content shared on digital platforms, given plummeting advertising revenues that have moved to companies such as Google and Facebook. Those two companies now account for 80 per cent of digital advertising revenue in Canada, according to the Canadian Media Concentration Research Project.

While Heritage Minister Steven Guilbeault initially hoped to have legislation introduced in the House of Commons by June, the Parliamentary session ended without such a bill.

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Then on Aug. 3, the government launched a public consultation asking for feedback on what approach to take. Bernhard said its unfortunate that theyve resorted to these types of tricks to try to persuade Canadians theyre moving on an issue that theyre clearly not moving on.

It's unfortunate they've resorted to these types of tricks to try to persuade Canadians they're moving on an issue they're clearly not moving on

Daniel Bernhard

The new consultation follows a non-public consultation process in which the government reached out to such stakeholders as publishers and broadcasters, digital platforms and academics, as previously reported by the National Post. The government laid out two options the Australian model that imposes bargaining rules for publishers and online platforms, and a scheme similar to the one for broadcasters in which cable companies and other TV service providers must fund Canadian content.

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The responses it received were split, the government said in a discussion paper released as part of the new consultation. It said no consensus emerged about the preferred way for the Government to address this issue, and the responses received regarding the two revenue sharing models were polarized.

It noted stakeholders often favoured one model substantially over the other, but neither model was unanimously preferred by any stakeholder group. The government received 46 written submissions, including from platforms Google and Microsoft, while others, such as Facebook and Twitter, provided oral comments only.

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But both Bernhard and Paul Deegan, president of the publishers group News Media Canada, said there was a clear preference by the news industry for adapting Australias approach to Canada. Deegan said the groups members, large and small, believe that by far and away the best approach is collective negotiation.

That includes the idea of final offer arbitration, in which a panel makes a binding decision if negotiations between news organizations and digital platforms hit a deadlock.

Bernhard said the industry and citizens groups alike seem unified behind the Australian style model. He argued its the most ethical and least complicated, because it doesnt require the government to be doling out cash to journalists directly. Its very important that we avoid that outcome.

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The issues for Canadian publishers are urgent

Paul Deegan, News Media Canada

The second option would consist of an independent fund, into which digital platforms pay mandatory contributions, similar to the obligations that are currently in place for TV service providers like cable companies. Currently, TV providers pay at least five per cent of their revenues into funds used for the creation of Canadian content.

Those who were in favour of that model said it would be easier to access for smaller outlets, while they feared the negotiation option would further entrench established players, the consultation paper outlined. It said the government is also open to other approaches, or a combination of the two models. The deadline for submissions is Sept. 15.

While they have been waiting for government legislation, various publishers have been entering into voluntary deals with Google and Facebook, but both Bernhard and Deegan said such arrangements wont solve the issue.

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Publishers are now taking probably lopsided deals with Google and Facebook, because they have no other choice and they cant wait for regulation, Bernhard said. Deegan said the view among publishers, including those who have signed deals with the Big Tech companies, is unanimous that legislation is needed quickly.

Since Parliament isnt sitting over the summer, the earliest that could happen is in the fall. But given that an election is widely expected to be called soon, realistically youre looking either late 2021 or into early enough 2022 for legislation to be passed, Deegan said.

The issues for Canadian publishers are urgent, he said. The overall decline in ad revenues, compounded with the COVID-19 pandemic, has made advertising dollars even more scarce, Deegan added, and theres definitely a need for urgent action.

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Government moves to consult public on how to make Big Tech pay for news - National Post