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Canada seeks Google and Facebook pay media outlets for the use of their content on their digital platforms.
The Canadian government’s bill is modeled on a similar law passed last year by Australia, which will require the two companies have trade agreements with companies that generate informational content to compensate for the use of their material.
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According to what was published by canadian media, If the bill is approved, the media will be able to collectively negotiate commercial agreements.
This would allow them act more fairly against the two digital giants.
Failing an agreement, as provided for in the bill, the Canadian Radio-television and Telecommunications Commission will have the power ability to enforce compensation by Internet companies.
Crisis in the information sector
The measure is based on the crisis the news media has been experiencing since internet giants took over a significant portion of the distribution of content and acquisition of advertising.
During the presentation of the bill, the Minister of Canadian Heritage, Pablo Rodríguez, pointed out that since 2008, more than 450 media outlets have closed in Canada and that 60 have disappeared in the last two years alone.
Advertising monopolized by Alphabet and Meta
The income for Internet Advertising reached 9.7 billion Canadian dollars (7.77 billion US dollars) in 2020.
80% of this amount went to Alphabet and Metathe parent companies of Google and Facebook, respectively.
In his explanation, Rodríguez pointed out that advertising revenue has shifted from the media to these large platforms, which he says “benefit from the dissemination of informative content”.
The Canadian minister added that the health of the sector is at risk due to imbalance between the power of the giants technology and communication companies, hence the proposal Google and Facebook pay the media for the use of their content.
With information from EFE
