It’s time for Ottawa to act to safeguard trusted journalism
Canada’s newspaper publishers say the “free ride” for Google and Facebook must stop.
News Media Canada, an organization representing the country’s newspapers including the Toronto Star, launched a campaign this week urging the federal government to bring in a new regulatory regime to halt what it calls “monopolistic” practices by the two internet giants.
This is more than just an arm wrestle over digital ad revenues, the bulk of which have been snapped up by Facebook and Google.
Rather, the heart of the campaign is about ensuring the viability of journalism in this country. It’s about news you can trust. News that is in peril.
“Virtually all our digital media outlets now face an existential threat because of the anticompetitive practices of web giants Facebook and Google,” News Media Canada said in a report unveiled Thursday.
In short, publishers say the two companies have used their market dominance to unfair advantage to control 80 per cent of digital ad revenues while not providing “fair” compensation for news content. Those charges are disputed by the two companies.
“News publishers are the largest source of original investigative reporting, newsgathering, and of factchecking in Canada. The dominant digital platforms use this content without providing a fair level of compensation to publishers,” it stated.
“If this free riding continues, Canada’s news media ecosystem might lose these vital and proven sources of reputable news,” says the report titled “Levelling the Digital Playing Field.”
The remedy, according to News Media Canada, lies in regulatory changes like those proposed in Australia earlier this year. They would expand the intellectual property rights publishers have over their content. They would require Google and Facebook to negotiate with Canadian media outlets on a deal to pay for that content. If no deal could be reached, it would go to arbitration.
While France, the United Kingdom and other countries are moving on this front as well, the Australian model has the most potential to support journalism in Canada and put in place a process that addresses the financial inequities, Canadian publishers say. They estimate it could mean $620 million in additional yearly revenues, restoring the annual loss that the industry has suffered since 2019.
The economic fallout of the pandemic has meant a further drop in ad revenues for media outlets, exacerbating the financial crisis that has eroded journalism in this country.
Yet it’s not for lack of demand that Canadian journalism is hurting financially. Digital news readership grows year by year. “Demand for credible and professional news remains as strong as ever in Canada,” the report says.
There are critical public policy issues at stake. As the report notes, “credible news is central to ensuring accountable politics, successful elections, and is essential to democracy.”
Acting on this front would help keep hundreds of journalists on the job and help ensure the financial viability of the outlets they work for. “And not just their jobs, but the content they produce and that is in demand by Canadian citizens on developments in their communities,” the report said.
Responding to the moves in Australia and elsewhere, Google and Facebook say they are not the problem and turn aside claims that they “steal” news content. Rather, they say the visibility of news articles on their sites boosts readership for media outlets.
“This in turn allows them to sell more subscriptions and advertising,” Facebook’s managing director for Australia and New Zealand said in a statement.
In Australia, the debate has prompted questions whether people there have become too reliant on Google and Facebook — and at what cost.
We may soon confront similar questions here. In its September throne speech, the Liberal government pledged to act, saying the “web giants are taking Canadians’ money while imposing their own priorities.
“The government will act to ensure their revenue is shared more fairly with our creators and media, and will also require them to contribute to the creation, production, and distribution of our stories, on screen, in lyrics, in music, and in writing,” the speech stated.
If the experience in Australia is any example, be prepared for a sharp-elbowed push back from the two companies. Google went on the offensive, warning users their experience on the site would be “worse” and suggested their personal data could be at risk.
Facebook threatened that it would stop publishers and users from sharing local and international news on its platform if the proposal became law.
That’s right. Facebook, long under fire for its slow-footed response to the spread of propaganda, conspiracy theories, misinformation and outright lies on its platform, said it would block news stories, sources of trusted and verified information.
That in turn would only open the door to even more fake news and misinformation on the site, according to the Australia Institute, a public policy think tank.
It’s a revealing threat that speaks volumes about priorities. And a reminder about what’s at stake here — safeguarding the future of journalism and trusted news.