Canada Bill to Compel Google, Facebook to Pay News Outlets Clears Legislative Hurdle
December 14 2022 - 04:18PM
Dow Jones News
By Paul Vieira
OTTAWA--Lawmakers in Canada's legislature on Wednesday approved
legislation, in a 213 to 114 vote, that compels big digital
platforms like Google and Facebook to compensate domestic media
outlets.
The legislation has cleared an important hurdle, which
represents part of Canada's plan to regulate the impact of digital
platforms on society.
The bill requires digital companies to negotiate with news
publishers on compensation for news stories appearing on their
platforms. Failure to reach an agreement would lead to both sides
entering into binding arbitration, according to the
legislation.
Facebook owner Meta Platforms Inc. had previously warned
parliament it could block access to Canadian news content -- like
it did in Australia last year -- should the legislation come into
force. The company reiterated that threat on Wednesday after the
vote.
Approval of the bill "forces us to consider removing news from
Facebook in Canada rather than being compelled to submit to
government-mandated negotiations that do not properly account for
the value we provide publishers," said Rachel Curran, head of
public policy in Canada for Meta Platforms.
Google parent Alphabet Inc. also opposes the bill. The Canadian
Radio-Television and Telecommunications Commission would be
responsible for ensuring enforcement.
The bill now heads to the Canadian senate, which also must give
its approval before the legislation becomes law. "We urge the
senate to seriously examine the implications of a bill that will
impact how information is shared online and harm innovative local
news outlets," Ms. Curran said.
The senate is currently reviewing legislation that would require
online streaming companies and platforms like YouTube and TikTok to
prominently showcase Canadian artists ahead of foreign-made
content. Canada's upper house is expected to amend the streaming
legislation, with a final decision likely in February. A senate
committee that reviewed the legislation has proposed 26
amendments.
Canada's parliament is set to break for the holiday season, with
lawmakers not scheduled to return until late January.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
December 14, 2022 17:03 ET (22:03 GMT)
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