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

Potters Virginia Dunseith and Ruth Porter present their joint exhibit ‘Dig It’ at Art 10 Gallery until the end of June. (Josef Jacobson/News Bulletin)
Potters show pieces for home and garden at Nanaimo’s Art 10 Gallery

Virginia Dunseith and Ruth Porter’s show ‘Dig It’ on display until end of June

Construction work continues on the City of Nanaimo’s new Fire Station No. 1 on Fitzwilliam Street. (News Bulletin file)
Next phase of borrowing approved as Nanaimo fire hall construction ongoing

City of Nanaimo CAO says construction on Fitzwilliam Street hall on schedule and budget

Nanaimo Fire Rescue firefighters at the scene of a single-vehicle crash on Tenth Street near Southside Drive on Sunday, June 13. (Greg Sakaki/News Bulletin)
Driver OK after crashing vehicle off the side of Nanaimo’s Tenth Street

Crews say wet roads a factor a crash Sunday, June 13

Emergency crews on scene of a two-car crash at the intersection of Cranberry Avenue and the Trans-Canada Highway on Sunday, June 13. (Greg Sakaki/News Bulletin)
Crash blocks Cranberry intersection in Nanaimo, no one injured

Incident blocks both southbound lanes of Trans-Canada Highway

Emergency crews on scene of a two-car crash at the intersection of Cranberry Avenue and the Trans-Canada Highway on Sunday, June 13. (Greg Sakaki/News Bulletin)
Crash blocks Cranberry intersection in Nanaimo, no one injured

Incident blocks both southbound lanes of Trans-Canada Highway

Kelowna-Lake Country MLA Norm Letnick, assistant deputy speaker at the B.C. legislature, presides over committee discussions. The legislature is completing its delayed spring session this week, with most MLAs participating by video conference. (Hansard TV)
B.C.’s daily COVID-19 infections dip below 100 over weekend

Only 68 new cases recorded Monday, four additional deaths

Gabriola Island artist Sheila Norgate is promoting the Digital Innovation Group’s art impact survey. (File photo)
Vancouver Island artists get behind regional arts impact study

Artists urged to use their stature to help put arts and culture super-region on the map

The BC Ferries website went down for a short while Monday morning following a provincial announcement that recreational travel between health authorities can resume Tuesday. (Black Press Media file photo)
BC Ferries’ website crashes in wake of provincial reopening announcement

Website back up now, recreational travel between health regions to resume as of Tuesday

Darren Campbell’s truck (pictured) was stolen when he stopped to check on a car in a ditch on Cowichan Bay Road on Monday morning. (Facebook photo)
Vancouver Island Good Samaritan’s truck stolen in nasty trick

‘Try to be a Good Samaritan and my $20,000 truck gets stolen right under my nose’

The Kamloops Indian Residential School is photographed using a drone in Kamloops, B.C., Monday, June, 14, 2021. The remains of 215 children were discovered buried near the former school earlier this month. THE CANADIAN PRESS/Jonathan Hayward
Communities grapple with what to do with former residential and day schools

Some tear them down as a tool to help healing, others repurpose them as tools for moving forward

Creative handmade signs abound at the June 13 Tofino rally for old growth trees. (Nora O’Malley photo)
VIDEO: Tofino stands in solidarity for Fairy Creek Blockades

Over 150 supporters attend rally hosted by Friends of Clayoquot Sound

FILE – Provincial health officer Dr. Bonnie Henry talks about B.C.’s plan to restart the province during a press conference at Legislature in Victoria, Tuesday, May 25, 2021. THE CANADIAN PRESS/Chad Hipolito
B.C. watching U.K.’s COVID struggles but don’t think province will see similar pitfalls

Studies show that one dose of vaccine is only 33 per cent effective in preventing B.1.617.2 spread

RCMP Const. Shelby Patton is shown in this undated handout photo. RCMP say that Patton was hit by an allegedly stolen truck that he had pulled over on Saturday morning in Wolseley, east of Regina. THE CANADIAN PRESS/HO, RCMP
Pair charged in Saskatchewan Mountie’s death make first court appearance

Const. Shelby Patton was hit by an allegedly stolen truck that he had pulled over Saturday morning

Most Read