Smartphone showing various applications to social media services and Google. (Pixabay photo)

Smartphone showing various applications to social media services and Google. (Pixabay photo)

National media calling for level playing field with Google, Facebook

In Canada, Google and Facebook control 80 per cent of all online advertising revenues

Black Press Media has joined Canada’s news media publishers in calling for all political parties in Parliament to support the adoption of Australia’s approach to combat the monopolistic practices of Google and Facebook.

The two American web giants control the lion’s share of online advertising dollars and distribute newspaper content without compensation in Canada, as in democracies around the world. The model being implemented in Australia counters these monopolistic practices and levels the digital playing field – at no cost to taxpayers and without user fees or other charges.

In Canada, Google and Facebook control 80 per cent of all online advertising revenues. They use their monopoly control not just to divert advertising from news media publishers, but also to divert millions in advertising revenue that they place on news media sites. Even when advertisers pay specifically to advertise on news media sites, Google and Facebook keep most of that revenue, while gathering and using data on news media site readers and advertisers for their own purposes.

Black Press Media CEO Rick O’Connor stated, “It is vital that we establish the principle that the content we produce and that is subsequently picked up and carried on the platforms such as Google and Facebook should be compensated by the platforms so that we can continue to provide the journalism that our local communities want.

“This is a principle that is only recently being accepted by the platforms, thus the need to work in concert with the rest of the industry to fight for local journalism.”

The recommendation that Canada adopt the Australian model is contained in Levelling the Digital Playing Field, a report commissioned by News Media Canada and prepared by global advisory firm FTI Consulting, which conducted an in-depth analysis of actions taken in democracies around the world to address the same challenge.

News Media Canada represents more than 90 per cent of news media readership in Canada including daily, regional, community, and ethnocultural news publications.

“A strong, diverse and independent news media is valued by Canadians and crucial to our democracy,” said Jamie Irving, vice-president of New Brunswick news publishing company BNI and Chair of News Media Canada’s working group.

“Publishing real news costs money, and Google and Facebook – two of the biggest companies in the world – cannot continue to be allowed to free-ride on the backs of Canadian news media publishers who produce news content, without fair compensation. The time to tackle the global web giants, as the federal government indicated in September, is now.”

Key elements of the Australian model include:

  • An effective approach that requires no new government funding, consumer taxes, or user fees.
  • Publishers, with the approval of government, form a collective bargaining unit to negotiate compensation for the use of their content and intellectual property. It is only through this government approved collective approach that the immense monopoly power of the web giants can be countered, and the digital playing field levelled.
  • A code of conduct to ensure that the web monopolies do not use new algorithms and other proprietary technology to expand their market domination and entrench unfair competitive practices.
  • Enforcement. Under the Australia model, the web giants are subject to fines in the hundreds of millions of dollars for a single infraction. Penalties of this scale are the only effective ways to rein in companies of this unprecedented size and power.
  • Comparable context. Both Canada and Australia publishers are facing significant challenges from the web giants. Canada and Australia share strong regional identities, and similar parliamentary and legal systems.

The government of Canada announced in its speech from the throne on Sept. 23, “The government will act to ensure their revenue is shared more fairly with our creators and media, and will also require them to contribute to the creation, production and distribution of our stories, on screen, in lyrics, in music and in writing.”

News Media Canada is calling on the government to tackle the web giants and adopt the Australian model in Canada.

The CEO members of the following companies are leading the discussions with the government of Canada including Glacier Media, Black Press, Torstar, Postmedia, Globe and Mail, La Presse, Quebecor and Brunswick News.

Canadian-owned Black Press operates more than 80 print and website publications in B.C., Alberta and the Yukon.

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A rainbow shining on Kelowna General Hospital on May 12, 2020 International Nurses Day. (Steve Wensley - Prime Light Media)
New COVID cases trending down in Interior Health

24 new cases reported Thursday, Feb. 25, death at Kelowna General Hospital

(File Photo)
Crash causes delays on Coquihalla southbound, travel advisory issued

A vehicle incident between Merrit and Hope has caused major delays heading south

A nurse performs a test on a patient at a drive-in COVID-19 clinic in Montreal, on Wednesday, October 21, 2020. (THE CANADIAN PRESS/Paul Chiasson)
30 new COVID-19 cases, five more deaths in Interior Health

This brings the total number of cases to 7,271 since testing began

FILE – A COVID-19 vaccine being prepared. (Olivia Sullivan/Sound Publishing)
B.C. seniors 80 years and older to get COVID vaccine details over next 2 weeks: Henry

Province is expanding vaccine workforce as officials ramp up age-based rollout

The future of the Cache Creek pool is still up in the air as council ponders different options and cost considerations. (Photo credit: <em>Journal</em> files)
No decision about whether Cache Creek pool will open in 2021

Council still discussing pool’s future; no date set for public meeting about its fate

Provincial health officer Dr. Bonnie Henry updates B.C.’s COVID-19 situation at the B.C. legislature. (B.C. government)
B.C. reports 10 additional deaths, 395 new COVID-19 cases

The majority of new coronavirus infections were in the Fraser Health region

A new survey has found that virtual visits are British Columbian’s preferred way to see the doctor amid the COVID-19 pandemic. (Unsplash)
Majority of British Columbians now prefer routine virtual doctor’s visits: study

More than 82% feel virtual health options reduce wait times, 64% think they lead to better health

Carolyn Howe, a kindergarten teacher and vice president of the Greater Victoria Teachers’ Association, says educators are feeling the strain of the COVID-19 pandemic and the influx of pressure that comes with it. (Nina Grossman/News Staff)
Stress leave, tears and insomnia: Island teachers feel the strain of COVID-19

Teachers still adjusting to mask and cleaning rules, pressures from outside and within

Captain and Maria, a pair of big and affectionate akbash dogs, must be adopted together because they are so closely bonded. (SPCA image)
Shuswap SPCA seeks forever home for inseparable Akbash dogs

A fundraiser to help medical expenses for Captain and Maria earned over 10 times its goal

The missing camper heard a GSAR helicopter, and ran from his tree well waving his arms. File photo
Man trapped on Manning mountain did nearly everything right to survive: SAR

The winter experienced camper was overwhelmed by snow conditions

Cory Mills, Eric Blackmore and A.J. Jensen, all 20, drown in the Sooke River in February 2020. (Contributed photos)
Coroner confirms ‘puddle jumping’ in 2020 drowning deaths of 3 B.C. men

Cory Mills, Eric Blackmore and A.J. Jensen pulled into raging river driving through nearby flooding

Castlegar doctor Megan Taylor contracted COVID-19 in November. This photo was taken before the pandemic. Photo: Submitted
Kootenay doctor shares experience contracting COVID-19

Castlegar doctor shares her COVID experience

Ashley Paxman, 29, is in the ICU after being struck by a vehicle along Highway 97 Feb. 18, 2021. She remains in critical condition. (GoFundMe)
Okanagan woman in ICU with broken bones in face after being struck by car

She remains in serious condition following Feb. 18 incident

Vancouver International Women in Film Festival kicks off March 5.
Women in Film Festival features two B.C. filmmakers

The 16th annual festival kicks off March 5, 2021

Most Read