Cost Recovery Rules for Online News Operators

Summary#

The Cost Recovery (Online News Act) Regulations are final rules made by the Canadian Radio-television and Telecommunications Commission under the Online News Act. They require people who operate a digital news intermediary to report their news-related revenue and to pay a share of the Commission’s costs for administering the Act, starting on April 1, 2025.

What it does#

• Requires each operator to file an annual return, by April 30, reporting the operator’s news revenue for the previous calendar year.
• Defines “news revenue” as the gross Canadian revenue from making news content available through a digital news intermediary, excluding payments from other covered operators.
• Lets the Commission estimate an operator’s news revenue if the operator does not file a return or if the return is incomplete or inaccurate, using information such as the operator’s own data, market trends, past performance and business plans.
• Sets how the cost recovery charge is calculated: each operator pays a share of the Commission’s costs based on their share of total news revenue. The charge has two parts — a base amount and an annual adjustment based on actual costs.
• Says negative charges are not refunded; instead they are deducted from the operator’s next year’s charge.
• Requires the Commission to publish its estimated costs each fiscal year in Canada Gazette, Part I.
• Requires payment of invoices within 30 days of being sent.
• Transitional rule: operators must report their news revenue for 2024 within 60 days after these Regulations come into force.

Who's affected#

• Primarily the people and businesses that operate a digital news intermediary — that is, services that make news content available online and fall under the Online News Act.
• The Canadian Radio-television and Telecommunications Commission is the body that will collect the returns, calculate charges, publish cost estimates, and send invoices.
• It is unclear from the text exactly which specific platforms or small services will meet the legal definition of “operator” under the Act; affected parties should check the Act or guidance from the Commission.

Why it matters#

• It puts an annual reporting and fee requirement on operators of digital news intermediaries so the regulator’s costs for running the Online News Act are shared across the sector.
• The charge is proportional to each operator’s share of total news revenue, so larger revenue sources pay more and smaller operators pay less — though any added fees and administrative work could matter to smaller services.
• The rules create a predictable process (annual returns, published cost estimates, clear payment timelines) for how the Commission funds its oversight under the Online News Act.