Ottawa has released the final regulatory framework for the Online News Act.
The act (Bill C-18) applies to platforms distributing news content that make more than $1 billion in annual revenue and have more than 20 million monthly visitors in Canada.
Both Google and Meta fall under this definition. Google agreed to contribute $100 million, adjusted for inflation, annually.
Meta has not reached an agreement and started ending news access for Canadians over the summer. The company’s position has not changed, officials from the department of Canadian Heritage told media in a technical briefing Friday.
One of the tech giant’s concerns surrounds uncapped financial reliability. Officials noted there is a way to address concerns, pointing to the agreement with Google.
While officials noted Meta would need to engage in the act if it reinstate news in Canada, they noted the tech giant has taken a similar position to not supply financial maintain for news outlets in other countries as well.
The regulations, which go into effect on December 19th, will trigger a 180-day timeframe for platforms, which is only Google at this time, to hold an open call for news businesses and take part in negotiations.
After the six-month period ends, the platforms must suggest the agreements to the Canadian Radio-television and Telecommunications Commission (CRTC).
If platforms don’t come forward, the CRTC will probe. The legislation gives the commission the ability to levy monetary penalties against platforms that don’t comply. The first offence could guide to a fine of up to $10 million, and each subsequent penalty could be up to $50 million.
While Google and Meta are the two platforms subjected to the act at this time, officials indicated Bing could possibly be added down the road if it meets the requirements.
