During the 2021 federal election campaign, the Liberal Party pledged to “introduce legislation within 100 days that would require digital platforms earning revenue from news publishing to share a portion of their revenue with media outlets.” Canadian information. This law would be based on the Australian model and would create a level playing field between global platforms and Canadian news outlets.” This statement raises some questions.
Posted yesterday at 2:00 p.m.
What exactly is the Australian model and how does it work? The Australian model is relatively simple. It allows news publishers to bargain collectively with big tech company platforms and departments to get reasonable compensation for the content journalists produce.
If the negotiations do not lead to a fair settlement, it proceeds to final offer arbitration, like in baseball. It does not involve taxpayers’ money, and the government does not have to pick winners and losers.
What was the reaction of Big Tech ?
Google has threatened to stop making Google Search available in Australia. Meta has gone so far as to block Australian individuals and news organizations from posting, sharing or viewing information on Facebook. Australian Prime Minister Scott Morrison replied: “We will not be intimidated by the Big Tech who seek to put pressure on our Parliament as it votes on our important news media bargaining code. Facebook’s actions to [retirer l’Australie de sa liste d’amis] today, cutting essential health information services and emergency services, were as arrogant as they were disappointing. »
Does it work ?
The Australian Competition and Consumer Commission (ACCC), akin to our Competition Bureau, told us: “The ACCC understands that at least 30 agreements have been reached with a range of media, including small and regional publications. Public reports suggest that in total these deals with Google and Meta amount to several hundred million dollars a year and have resulted in strong hiring environments for Australian journalists. Major Australian news organizations have also pledged to increase their investment in journalism and regional information. Robert Whitehead, Head of Digital Platform Initiative at the International News Media Association, said: “There is no doubt that small and medium-sized publishers have been the surprise winners of the media bargain code. Australians. The big three commercial players started the momentum… but it was the smaller players who gained the most, relative to their size. »
What does the outgoing president of the ACCC say?
In an article published in the Sydney Morning Herald from February 14, 20221, chairman Rod Sims said, “It’s no surprise that Google doesn’t like code. He made him do something he didn’t want to do, which was pay for journalism. It’s money that [Google] would not have paid without the code. It is the anti-journalism approach that strikes me as the most worrying. What he is saying clearly is that he does not want to pay money to current media companies, which employ journalists, and that he prefers to get information from companies that are not media companies , even individuals who are not journalists. It’s about protecting journalism, which has always been the purpose of the code, and what the code has achieved. »
Possible in Canada?
Google, according to an article published on February 15, 20222 in Press Gazettesaid that this model “does not constitute[ait] not a sustainable model for the future of journalism”. Instead, Google wants to “create a ‘made in Canada’ solution that will ensure a strong future for news in Canada and enable innovation.”
On this point, we agree with the Californians, but it must involve the possibility for publishers – large and small – to bargain collectively, with the support of a strong enforcement mechanism. And publishers must receive fair market value for their content.
Ultimately, Canadian news publishers face an existential threat, with Google and Facebook now taking 80% to 90% of online advertising revenue. After peaking at $4.6 billion in 2008, Canadian newspaper revenues have taken a nosedive and now stand at less than $1.5 billion. During that same period, Google and Facebook saw their combined Canadian revenues grow from just over $1 billion to over $8 billion.
Since 2013, we have lost 300 trusted newspaper titles in Canada. The time has come for Canadian parliamentarians to act. What we need is a Canadian approach that follows the broad lines of what the Australians have done. This is not a silver bullet; but receiving fair market value for content produced by Canadian journalists is an important step in putting the newspaper industry on a more stable commercial footing.
*News Media Canada represents 579 newspaper titles across the country.