Online News Act: Platform Thresholds

Summary#

This is a proposed set of regulations called Regulations Respecting the Application of the Online News Act, the Duty to Notify and the Request for Exemptions. They explain which big digital platforms the Online News Act would cover, how and when those platforms must tell the regulator, and how platforms can win an exemption by reaching deals with news outlets. The proposal is open for comment for 30 days and links to the Act, which is scheduled to come into force on December 19, 2023.

What it does#

• Sets clear thresholds so platforms can decide whether the Online News Act applies to them:
  • Global revenue over $1 billion in a year.
  • Operate a search engine or social media service that distributes news in Canada.
  • At least 20 million average monthly unique visitors (search) or active users (social) in Canada.
• Requires platforms that meet those tests to notify the CRTC within 30 days that the Act applies.
• Lays out how a platform can qualify for an exemption from mandatory bargaining by showing it has voluntary agreements with news businesses that meet several tests, including:
  • Compensation fairness: payments are within 20% of the average relative compensation across agreements.
  • A commitment that some of the money will be used to produce local, regional, or national news.
  • Protections for editorial independence (no retaliation or editorial interference).
  • A contribution that, in total, exceeds a formula based on the platform’s global revenue × Canada’s share of world GDP × 4%.
  • Coverage across types of news outlets, including independent local outlets, Indigenous outlets, and official-language minority community (OLMC) outlets.
• Requires platforms to run a public "open call" so news businesses know they can negotiate:
  • Notices posted for at least 60 days and news businesses given 60 days to respond.
• Says the CRTC will evaluate exemption requests and publish lists and decisions. If agreed payments fall below the required level later, an exemption can be revoked.

Who's affected#

• Large digital platforms: major search engines and social media services that meet the thresholds (global revenue $1 billion; 20 million monthly Canadian users/visitors).
• News businesses of all sizes: national, regional, local, independent, Indigenous, and official-language minority community outlets. Smaller outlets are encouraged to join collectives.
• The regulator: CRTC (Canadian Radio-television and Telecommunications Commission) will receive notifications, assess exemption requests, and run consultations.
• The policy sponsor and contact is Department of Canadian Heritage, which wrote the proposed rules and is collecting comments.

Why it matters#

• It aims to make big platforms pay news producers more fairly for news that appears on their services. That could bring new revenue to struggling newsrooms, especially local and under‑represented outlets.
• The rules spell out who is in scope and when platforms must act. That reduces uncertainty for both platforms and news businesses about who needs to negotiate.
• The exemption criteria try to ensure deals support newsroom sustainability, protect editorial independence, and include diverse types of outlets (including Indigenous and OLMC outlets).
• Small and local newsrooms may benefit if they can join collectives, but they could still face barriers in bargaining; the regulations try to lower that by requiring open calls and collective engagement.
• The proposal is not final. The rules are open for comment for 30 days, and the CRTC will play a key role in applying the criteria and deciding exemptions.