Big Tech vs. Canadian news: the battle over C-18, explained | About That

Summary

A Canadian government initiative challenges major tech giants, Google and Meta, over their use of Canadian news content. The government is pushing for a new law, the Online News Act, which requires these companies to compensate Canadian media outlets for sharing their content. While Meta and Google threaten to block Canadian news from their platforms, the conflict has sparked global interest, with similar laws being considered in other countries. The Canadian government emphasizes the need to protect democratic access to news, despite opposition from the tech giants who argue the law imposes unfair financial burdens.

Takeaways

• 😀 Canadian MPs from different political parties are uniting to challenge major tech companies like Google and Meta, who threaten to block Canadian news content on their platforms.
• 😀 The Canadian government has suspended advertising on Facebook and Instagram, which adds up to around 10 million Canadian dollars—essentially negligible for Meta, which made over 100 billion USD last year.
• 😀 The Canadian government has passed the Online News Act, which requires big tech companies to negotiate compensation with Canadian media companies for sharing their news content.
• 😀 Meta and Google are opposed to the new law and have threatened to block Canadian news if the bill takes effect in about six months.
• 😀 Media companies argue that the new law is necessary to keep newsrooms in business, as the industry faces declining revenues from traditional advertising.
• 😀 Major news organizations in Canada, such as CBC and the Toronto Star, support the Online News Act and have already signed content-sharing agreements with Meta and Google.
• 😀 Smaller media outlets worry that without Google and Meta directing traffic to their sites, they will lose valuable advertising revenue, making their survival uncertain.
• 😀 The situation in Canada is not unique, as similar battles are taking place in the U.S., France, and Australia, where tech companies have also faced pressure to compensate news publishers.
• 😀 In Australia, after a similar law was passed, Google and Meta initially threatened to pull news content but later struck deals with local news outlets after amendments to the law.
• 😀 While Canada is a smaller player in this global dispute, the outcome of this fight may have a significant influence on other countries considering similar legislation.

Q & A

What is the core issue discussed in the video?

The core issue is the dispute between the Canadian government and big tech companies like Google and Meta over compensating Canadian news organizations for the use of their news content on digital platforms. The Canadian government is enforcing the Online News Act to ensure fair compensation for news outlets.

What is the government's response to Meta's actions regarding Canadian news content?

In response to Meta's threat to cut Canadian news from their platforms, the Canadian government announced the suspension of advertising on Facebook and Instagram. However, this is seen as a symbolic gesture since the government’s advertising budget is relatively small compared to Meta's earnings.

Why is the suspension of government advertising considered ineffective against Meta?

The suspension of $10 million in Canadian advertising is minimal compared to Meta's annual revenue, which exceeded $100 billion. This makes the suspension largely symbolic, as it has little financial impact on Meta.

What is the purpose of the Online News Act in Canada?

The Online News Act aims to force tech giants like Google and Meta to compensate Canadian media organizations whenever their news content is shared or linked to on these platforms. The law requires these companies to negotiate deals with Canadian news outlets.

How does the Online News Act affect platforms like Google and Meta?

The Online News Act would require platforms like Google and Meta to negotiate payments to Canadian news outlets for sharing their content. If these companies do not reach an agreement, they would be subject to formal mediation and could face significant financial consequences.

Why do Google and Meta oppose the Online News Act?

Google and Meta oppose the Online News Act because it would force them to pay for content they currently share for free. They argue that the law imposes unfair financial liability and would lead to uncapped costs for displaying Canadian news content.

How does the bill impact Canadian news organizations?

The bill is designed to help struggling Canadian news organizations by ensuring they receive compensation for the news content that is shared by platforms like Google and Meta. This would help newsrooms financially and maintain their ability to produce quality journalism.

What are the challenges faced by Canadian news organizations in the digital age?

Canadian news organizations are facing declining ad revenue due to the dominance of Google and Meta in online advertising. This has led to layoffs, newsroom closures, and a reduction in journalistic quality, as small outlets can no longer afford to keep reporters on staff.

What has been the global response to similar issues with big tech companies?

Globally, countries like Australia and France have passed similar laws requiring tech companies to pay for news content. These countries faced initial resistance from Google and Meta, but have worked through amendments to reach agreements with the companies. Canada is following a similar path.

How does the situation in Canada compare to the one in Australia?

Australia passed a similar law requiring Google and Meta to pay for news content, and after some initial resistance, the companies struck deals with Australian media. Canada is facing a similar situation, with negotiations ongoing between the government and tech giants.