Tech companies like Google and Facebook will no longer be able to display news content on their platforms in Canada for free in the near future. The Canadian government is preparing to introduce a bill in parliament that would allow these tech companies to pay local news publishers to access their news content once it becomes law.
This move by the government will help local media companies, as online advertising revenue is now going directly into the pockets of these Silicon Valley giants, while local media companies are facing the problem of declining advertising revenue for them. Canada’s Heritage Minister Pablo Rodriguez said he would introduce a bill called the Online News Act to ensure that companies such as Alphabet Inc. and Meta Platform Inc. enter into contracts with local news organizations to pay for their content.
Listed Canadian companies, such as Postmedia Networks, Canada Corporation, are expected to benefit from the bill’s enactment. Today, most Canadians are turning to digital platforms for news content, which has had a profound impact on media companies. We are trying to correct this imbalance. In Canada, more than 450 mediahouses have closed since 2008, 64 have closed in the past two years. The Australian Parliament passed such a law in February last year. We are preparing a similar law in Canada.