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

(Contributed Photo/Louisa Van Vliet)
Community Camera: November 26, 2020

Submit your photos to news@ahobserver.com

Volunteers sort food donations during the Agassiz Fire Department’s food drive on Thursday, Dec. 5, 2019. (Agassiz Fire Department/Facebook)
VIDEO: Agassiz Fire Department to host COVID-safe food drive

This year’s drive looks a little different

With news that Santa won’t be coming to Cottonwood Centre this year, April Blais wanted to set up a photo op with the jolly old elf in her front yard. (Submitted photo)
Chilliwack family blown away by response to Christmas light display

The Blais family has decked out their yard with holiday decor, collecting food bank donations

Abbotsford residents gather in the Clearbrook area on Monday to demonstrate against what they say is unfairt treatment by the Indian government to farmers in the Punjab region of that country. (Maan Sidhu photo)
Abbotsford residents gather to protest unfair treatment of India farmers

Locals believe new bills will devastate small farms, demand farmers be allowed to protest peacefully

The paraglider pilot, while attempting to free himself, dropped 30 feet and sustained serious injuries as Kent-Harrison Search and Rescue members worked quickly to extract him from the trees. They were able to get him to a waiting ambulance at the end of a nearby forest service road. (Contributed Photo/Dave Harder)
UPDATE: Rescued paraglider being treated for non-life threatening injuries

Pilot tried to self-rescue but sustained serious injuries in a 30-foot fall

A tongue-in-cheek message about wearing a face mask to curb the spread of COVID-19 on a sign outside a church near Royal Columbia Hospital, in New Westminster, B.C., on Sunday, Nov. 29, 2020. THE CANADIAN PRESS/Darryl Dyck
B.C.’s COVID-19 infection count climbs back up to 656

20 more people in hospital, active cases still rising

Mirandy Tracy, left, and Tara Kurtz are two Langley mothers who are organizing a "sick out" for Tuesday, Dec. 1 to protest COVID conditions in schools. They're calling for masks and smaller class sizes, among other things. (Matthew Claxton/Langley Advance Times)
Politician, labour leader throw support behind student Sick Out day

Langley parents started the movement to keep kids home on Dec. 1 as a protest

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

A family emerged with a purchase at the Tannenbaum Tree Farm at 5398 252 St in Aldergrove on Sunday, Nov. 29, 2020 (Dan Ferguson/Langley Advance Times)
Christmas tree season is off to an early start

People are ‘bored’ with staying home due to COVID-19 and want to decorate early, farm owner believes

A heavy police presence was on scene on Dec. 28, 2017 following the shooting death on Bates Road in Abbotsford of Alexander Blanarou, 24, of Surrey. (Abbotsford News file photo)
Three men charged with Abbotsford shooting death of Surrey man

Alexander Blanarou, 24, was killed in a rural area on Dec. 28, 2017

THE CANADIAN PRESS/Nathan Denette
B.C. researchers launch study to test kids, young adults for COVID-19 antibodies

Kids and youth can often be asymptomatic carriers of the novel coronavirus

Most Read