Canadian government offering exemption to Google, Meta in draft Online News Act regulations

The federal government has released draft regulations for its Online News Act and revealed a new exemption that would allow Meta and Google to pay a certain amount to a group of news outlets.

For Google, the figure is $172 million a year. For Facebook’s parent company, it’s $62 million.

Instead of reaching deals with all major news outlets, the tech giants now have the option to reach a deal with a collective group that would include independent and minority language outlets. The minimum threshold could also include non-monetary contributions to Canadian journalism.

The act, also known as Bill C-18, received Royal Assent in June of this year. It’s aimed at getting large tech corporations like Google and Meta to pay Canadian news outlets to share their content online.

In a Friday news release, the feds say the proposed regulations will be published Saturday in the Canada Gazette, which is the official newspaper of the Government of Canada. The government says the regulations, along with the accompanying Regulatory Impact Analysis Statement, will remain published for a 30-day public consultation period.

“The government welcomes the participation of businesses, academics, civil society and all Canadians,” the government said.

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The feds say the proposed regulations will provide clarity on which platforms will have to abide by the act and outline processes for getting an exemption from it.

“To obtain an exemption, platforms must enter into agreements supporting the diverse production of Canadian news in communities across Canada. The total value of agreements must meet a certain threshold in order to qualify for an exemption,” the government said.

After the consultation period, the final regulations will also be published in the government newspaper. After that, the Canadian Radio-television and Telecommunications Commission (CRTC) will be bound by the regulations.

Regulatory process ‘not equipped to address the fundamentally flawed premise’ of act: Meta

In the months since the act received Royal Assent, Meta has moved to block Canadian news content from its platforms, which include Facebook and Instagram.

Despite the approaching consultation process, the tech company says its stance remains unchanged.

“As we have communicated to the government, the regulatory process is not equipped to address the fundamentally flawed premise of the Online News Act,” Rachel Curran, Meta Canada’s head of public policy, said in a statement.

“As the legislation is based on the incorrect assertion that Meta benefits unfairly from the news content shared on our platforms, today’s proposed regulations will not impact our business decision to end news availability in Canada.”

Google has said that when the act becomes law, it will stop displaying Canadian news content on its platforms.