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.

Just Posted

B.C. Centre for Disease Control data showing new cases by local health area for the week of May 2-8. (BCCDC image)
Vancouver Island COVID-19 local case counts the lowest they’ve been all year

On some areas of Island, more than 60 per cent of adults have received a vaccine dose

A nurse gets a swab ready to perform a test on a patient at a drive-in COVID-19 clinic in Montreal, on Wednesday, October 21, 2020. THE CANADIAN PRESS/Paul Chiasson
Island’s daily COVID-19 case count drops below 10 for just the second time in 2021

Province reports 8 new COVID-19 cases on Vancouver Island Wednesday

Photo by Marc Kitteringham, Campbell River Mirror
Campbell River dock fire spread slowed thanks to security guard

Creosote docks pose challenges for fire fighters

Scenes like this one in the dugout are all too frequent for parents and kids arriving to play baseball at Nunns Creek Park these days, spurring a request to the city to let them move to the Sportsplex in Willow Point. Photo from CRMB presentation to City of Campbell River
Safety concerns run Campbell River Minor Baseball out of Nunns Creek Park

Parents say ‘needle and feces sweeps’ have become part of everyday life for the baseball community

The cover of the newly redesigned Beaver Lodge Forest Lands activity guide. Photo courtesy Greenways Land Trust
Greenways redesigns Beaver Lodge activity guide

Guide has helped teach students for over a decade

Prince Rupert was one of the first B.C. communities targeted for mass vaccination after a steep rise in infections. Grey area marks community-wide vaccine distribution. (B.C. Centre for Disease Control)
B.C. tracks big drop in COVID-19 infections after vaccination

Prince Rupert, Indigenous communities show improvement

Dr. Aref Tabarsi, a general pathologist at the North Island Hospital Campbell River Hospital Medical Laboratory, spoke about the issue of service in the region at a meeting in February 2020. Black Press file photo
Comox Strathcona hospital board wants pathology service back

Board supports move for chair, vice-chair to engage with Island Health on issue

Municipal governments around B.C. have emergency authority to conduct meetings online, use mail voting and spend reserve funds on operation expenses. (Penticton Western News)
Online council meetings, mail-in voting option to be extended in B.C.

Proposed law makes municipal COVID-19 exceptions permanent

A nurse prepares a dose of the COVID-19 vaccine in Kelowna on Tuesday, March 16. (Phil McLachlan/Black Press)
British Columbians aged 20+ can book for vaccine Saturday, those 18+ on Sunday

‘We are also actively working to to incorporate the ages 12 to 17 into our immunization program’

The AstraZeneca-Oxford University vaccine. (AP/Eranga Jayawardena)
2nd person in B.C. diagnosed with rare blood clotting after AstraZeneca vaccine

The man, in his 40s, is currently receiving care at a hospital in the Fraser Health region

Canada’s demo Hornet soars over the Strait of Georgia near Comox. The F-18 demo team is returning to the Valley for their annual spring training. Photo by Sgt. Robert Bottrill/DND
F-18 flight demo team returning to Vancouver Island for spring training

The team will be in the Comox Valley area from May 16 to 24

Saanich police and a coroner investigated a fatal crash in the 5200-block of West Saanich Road on Feb. 4, 2021. (Devon Bidal/News Staff)
Police determine speed, impairment not factors in fatal Greater Victoria crash

Driver who died veered across centre line into oncoming traffic for unknown reason, police say

Ladysmith RCMP safely escorted the black bear to the woods near Ladysmith Cemetary. (Town of Ladysmith/Facebook photo)
Bow-legged bear returns to Ladysmith, has an appointment with the vet

Brown Drive Park closed as conservation officers search for her after she returned from relocation

Brian Peach rescues ducklings from a storm drain in Smithers May 12. (Lauren L’Orsa video screen shot)
VIDEO: Smithers neighbours rescue ducklings from storm drain

Momma and babies made it safely back to the creek that runs behind Turner Way

Most Read