Summary#

The Online News Act (C‑18) sets rules for large online platforms that make news content available in Canada. It creates a bargaining framework so platforms and Canadian news businesses can reach deals for compensation and other terms. The Canadian Radio‑television and Telecommunications Commission (CRTC) oversees the system, including exemptions, bargaining rules, and enforcement.

• Applies to “digital news intermediaries” (e.g., search engines, social media) when there is a clear power imbalance with news businesses (Application).
• Lets the CRTC exempt a platform if it signs deals that meet set criteria, including fair pay and support for local, Indigenous, and official language minority outlets (Exemptions — Exemption order).
• Sets a 90‑day negotiation, 120‑day mediation, and 45‑day final‑offer arbitration process, limited to money disputes (Bargaining Process — Steps; Scope of final offer arbitration).
• Bars unjust discrimination or undue preference against eligible news businesses; allows complaints to the CRTC (Discrimination, Preference and Disadvantage — Prohibition; Complaint).
• Authorizes administrative monetary penalties up to $10 million for a first violation by an entity and $15 million for subsequent violations (Administrative Monetary Penalties — Maximum amount of penalty).
• Requires an annual independent audit report on the Act’s impact, published by the CRTC (Independent Review — Annual report).

What it means for you#

• Households and news readers

  • You may see changes in how news links and content appear on major platforms, depending on whether a platform participates, qualifies for an exemption, or changes its services (Application; Exemptions — Exemption order).
  • The Act aims to support local, regional, national, Indigenous, and official language minority news, which could affect the amount and diversity of Canadian news you can access (Purpose; Exemptions — Exemption order).

• Journalists and newsroom workers

  • News businesses that qualify and participate in bargaining may receive compensation from platforms. The Act says an appropriate portion must support news production (Exemptions — Exemption order).
  • Eligible news businesses must meet criteria such as employing two or more journalists in Canada, operating in Canada, and following a code of ethics (Eligibility — Eligible news businesses — designation).

• News businesses and publishers

  • If eligible, you can initiate bargaining with listed platforms and use the 90/120/45‑day process, with final‑offer arbitration restricted to monetary terms (Bargaining Process — Steps; Scope of final offer arbitration).
  • Groups of eligible news businesses can bargain together and are exempt from certain Competition Act provisions when doing so (Competition Act — Covered agreements; Other agreements).
  • You can file complaints if a platform unjustly discriminates or gives undue preference that harms you (Discrimination, Preference and Disadvantage — Prohibition; Complaint).

• Digital platforms (operators)

  • If the CRTC finds a significant bargaining power imbalance, your service can be listed, triggering bargaining duties and potential penalties for non‑compliance (Application; List of digital news intermediaries; Duty to bargain; Administrative Monetary Penalties — Maximum amount of penalty).
  • You may seek an exemption by making deals that meet criteria for fair compensation, newsroom support, and broad inclusion across diverse outlets (Exemptions — Exemption order).
  • If party to a covered agreement, you are not liable under the Copyright Act for activities covered by that agreement (Copyright — Liability of operators).

• Canadian Broadcasting Corporation (CBC/Radio‑Canada)

  • If CBC is party to agreements under the Act, it must file an annual report to the CRTC on compensation received and how funds were used (Provision of Information — Canadian Broadcasting Corporation).

Expenses#

Estimated net cost: Data unavailable.

• No official fiscal note was published. The Act includes cost‑recovery tools rather than a set appropriation amount (Financial Provisions).
• The CRTC may:
  • Charge fees for services (e.g., handling complaints, regulatory processes), not exceeding cost (Fees for services).
  • Recover administration costs from operators through charges set by regulation, not exceeding cost (Cost recovery).
• Private payments to news businesses will come from platform‑publisher agreements or arbitration outcomes. Amounts vary by agreement (Bargaining Process; Agreements).
• Implementation example: The Government of Canada announced regulations and a framework under which Google agreed to contribute CAD $100 million/year to Canadian news businesses. This is an implementation outcome under the Act’s regulatory scheme, not a statutory appropriation (Canadian Heritage, November 29, 2023).

Proponents' View#

• Helps correct bargaining imbalances so news producers are fairly paid when platforms make their content available (Application; Purpose).
• Ensures funds support journalism by requiring that compensation be used to produce local, regional, and national news (Exemptions — Exemption order).
• Protects smaller and diverse outlets by requiring that a “significant portion” of independent local, Indigenous, and official language minority outlets benefit (Exemptions — Exemption order).
• Provides a clear, time‑limited process with final‑offer arbitration to reach deals and avoid stalemates (Bargaining Process — Steps; Final Offer Arbitration — Decision of arbitration panel).
• Allows collective bargaining by news businesses without breaching certain Competition Act provisions, improving their leverage (Competition Act — Covered agreements; Other agreements).
• Builds transparency with an annual independent audit on total deal value and distribution across outlets, published by the CRTC (Independent Review — Annual report).

Opponents' View#

• Risk of reduced access to news if platforms change services to avoid coverage; Meta stopped making news available to Canadian users in 2023 in response to the Act, affecting user access and publisher traffic (Canadian Heritage, August 2023).
• Smaller publishers may still miss out if they do not meet eligibility (e.g., two‑journalist minimum, general‑interest focus) or cannot engage in complex bargaining (Eligibility — Eligible news businesses — designation).
• The process is administratively heavy: CRTC listings, exemption reviews, code of conduct, information requests, and confidentiality rules increase compliance burdens (List of digital news intermediaries; Exemptions; Code of Conduct; Provision of Information).
• Arbitration is limited to money disputes, constraining solutions on non‑monetary issues like product changes or algorithmic placement (Bargaining Process — Scope of final offer arbitration).
• Enforcement carries large penalties (up to $10 million first violation; $15 million subsequent for entities), creating financial risk during implementation (Administrative Monetary Penalties — Maximum amount of penalty).
• Government access to submitted information (Minister and Chief Statistician) and sharing with the Competition Bureau, even with confidentiality limits, may raise data‑handling concerns for businesses (Provision of Information — Minister and Chief Statistician; Confidential information).