Online News Cost Rules and Trade Inquiries

Summary#

This Gazette item records two procurement complaints that the Canadian International Trade Tribunal decided to investigate on May 16, 2024 and May 17, 2024. It also publishes a proposed set of rules called the Cost Recovery Regulations under the Online News Act, which would set reporting and fee rules for news operators and would come into force on April 1, 2025.

What it does#

• The Tribunal will hold two inquiries into federal procurement complaints:
  • An inquiry into a complaint by Med‑Eng Holdings ULC about a Defence procurement for dismounted infantry armour systems. The company says solicitation documents were unclear about testing male and female ballistic panels and that it was unreasonably denied more time to test the female-shaped panels. (Decision to inquire: May 16, 2024.)
  • An inquiry into a complaint by Nation Clean Energy Inc. about a Canadian Coast Guard fuel procurement for up to 950 000 litres of marine fuel to Vancouver and Victoria. The company says it was put at a competitive disadvantage during re‑tendering and evaluation. (Decision to inquire: May 17, 2024.)
• The Cost Recovery Regulations (proposed by the Canadian Radio-television and Telecommunications Commission) would:
  • Require operators to file an annual return by April 30 each year with their news revenue from each digital news intermediary they run.
  • Calculate each operator’s fee by giving them a share of the Commission’s estimated costs based on their share of total news revenue. There is also an annual adjustment based on actual costs.
  • Require payment of the invoice within 30 days of the invoice date.
  • Require operators to report their news revenue for 2024 within 60 days after these Regulations come into force.
  • Require the Commission to publish its estimated costs in the Canada Gazette each fiscal year.
  • Come into force on April 1, 2025 (or on the date of registration if registered after that day).

Who's affected#

• Companies that bid on federal defence and coast guard contracts — in these cases, suppliers of body armour and suppliers of marine fuel (complainants named Med‑Eng Holdings ULC and Nation Clean Energy Inc.).
• The federal departments that ran the procurements: Department of Public Works and Government Services, acting for the Department of National Defence, and for the Canadian Coast Guard.
• Operators of digital news intermediaries and news publishers that fall under the Online News Act. These could include platforms or businesses that make news available digitally and therefore must report revenue and pay a share of the CRTC’s costs.

Why it matters#

• Procurement inquiries can affect who wins government contracts, and they highlight disputes about fairness, clarity of requirements, and the opportunity to compete. Affected companies could see delays or changes in the contracting process.
• The proposed Cost Recovery Regulations would create new reporting duties and potential fees tied to a company’s share of news revenue. That can mean extra paperwork and a new cost for digital news operators starting in 2025. It also sets timelines — like the April 30 return date and the 60 days deadline to report 2024 revenue — that operators will need to meet.