Canada Unveils Draft Rules for New Law Targeting Tech Giants’ Payments to News Outlets

Canada has taken a significant step towards holding tech giants accountable for their impact on the news industry by unveiling draft rules for a new law aimed at compelling companies like Alphabet’s Google and Meta Platforms, which oversees Facebook, to pay news outlets. This move follows concerns expressed by these tech giants about potentially facing uncapped liabilities.

The draft rules, now subject to public consultation, propose a substantial financial commitment from Google and Facebook. According to a Canadian government official who briefed reporters, these rules would generate approximately C$172 million ($126.6 million) annually from Google and about C$60 million per year from Facebook.

This development marks a significant effort by the Canadian government to address the evolving landscape of digital news distribution and its impact on traditional media organizations. The proposed legislation aims to ensure a fair and sustainable ecosystem for news outlets while holding tech companies accountable for their role in disseminating news content.

The public consultation process will provide stakeholders and the public with an opportunity to weigh in on the draft rules, shaping the final legislation’s impact on the tech and news industries in Canada.

These proposed rules come amidst ongoing global discussions about the responsibilities of tech giants in supporting journalism and the sustainability of the news industry. Canada’s efforts to establish a framework for financial contributions from tech companies are seen as a significant move toward addressing these pressing concerns.

As the draft rules progress through consultation, the Canadian government aims to strike a balance between fostering a vibrant news media landscape and addressing the concerns of tech companies. The outcome of these deliberations could potentially set a precedent for other countries grappling with similar issues in the digital age.

Subscribe to our newsletter for latest news and updates. You can disable anytime.