Part IIFinal RegulationVolume 159, Number 6Published: March 12, 2025

Cost Recovery Rules for Online News Operators

Cost Recovery (Online News Act) Regulations: SOR/2025-51

Regulations require operators of digital news intermediaries to file an annual return reporting their Canadian news revenue and to pay a share of the Commission’s costs for administering the Online News Act. The rules set the calculation of a cost recovery charge (base amount plus annual adjustment), require returns by April 30, payment of invoices within 30 days, and come into force on 2025-04-01.

Published
March 12, 2025
Department
Unavailable
Section
Cost Recovery (Online News Act) Regulations
Comment deadline
Unavailable
Effective date
April 1, 2025
Publication part
Part II

Summary

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.

Key topics

Cost Recovery (Online News Act) RegulationsOnline News ActCanadian Radio-television and Telecommunications Commissiondigital news intermediarynews revenueannual returncost recovery chargebase assessment amountannual adjustment amountCanada Gazette, Part Ipayment within 30 days2024 news revenue reporting

Source: Canada Gazette

Official source