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

École North Oyster. (Black Press file)
With more student drop-offs during pandemic, SD68 examines safety outside North Oyster school

Fewer school bus trips and more cars accentuating traffic concerns, say school district staff

Downtown is believed to be one of the areas best poised for new developments. (File photo)
Development remains consistent in lead up to official community plan process

Pandemic or no pandemic, Ladysmith is growing. New developments have sprung up… Continue reading

Ladysmith’s 1st Avenue will be lit up until January 15. (Cole Schisler photo)
Ladysmith’s 1st Avenue all aglow

Although the tradition Light Up this year was cancelled, folks can still enjoy the holiday lights

The COVID-19 pandemic had an effect on film production on central and north Vancouver Island, says Vancouver Island North Film Commission. Pictured here, production of TV series Resident Alien in Ladysmith earlier this year. (Black Press file)
Film commissioner says COVID-19 cost central Island $6 million in economic activity

Jurassic World: Dominion, Chesapeake Shores among productions halted due to pandemic, says INFilm

The first $300 shopping spree winner, Carol Travis. (Cole Schisler photo)
LDBA and Ladysmith Credit Union sponsor local shopping sprees

Don’t miss your chance to win a $300 local shopping spree

B.C. Health Minister Adrian Dix and provincial health officer Dr. Bonnie Henry update the COVID-19 situation at the B.C. legislature, Nov. 23, 2020. (B.C. government)
B.C. sets another COVID-19 record with 887 new cases

Another 13 deaths, ties the highest three days ago

Screenshot of Pastor James Butler giving a sermon at Free Grace Baptist Church in Chilliwack on Nov. 22, 2020. The church has decided to continue in-person services despite a public health order banning worship services that was issued on Nov. 19, 2020. (YouTube)
Two Fraser Valley churches continue in-person services despite public health orders

Pastors say faith groups are unfairly targeted and that charter rights protect their decisions

A big job: Former forests minister Doug Donaldson stands before a 500-year-old Douglas fir in Saanich to announce preservation of some of B.C.’s oldest trees, July 2019. (B.C. government)
B.C. returning to ‘stand-alone’ forests, rural development ministry

Horgan says Gordon Campbell’s super-ministry doesn’t work

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

Lake Cowichan’s Oliver Finlayson, second from left, and his family — including grandma Marnie Mattice, sister Avery, mom Amie Mattice and dad Blair Finlayson — were all smiles on Nov. 16 when their pool arrived, thanks to lots of fundraising and the generosity of the Cowichan Lake community. (Kevin Rothbauer/Citizen)
Cowichan Lake community comes together to help family get vital pool

Oliver Finlayson, 9, has Duchenne muscular dystrophy and hydrotherapy is a big help

Penny Hart is emotional outside the Saanich Police Department as she pleads for helpt to find her son Sean Hart last seen Nov. 6 at a health institution in Saanich. (Devon Bidal/News Staff)
VIDEO: Mother of missing Saanich man begs public to help find her son

Sean Hart last seen leaving Saanich mental health facility Nov. 6

Alexandre Bissonnette, who pleaded guilty to a mass shooting at a Quebec City mosque, arrives at the courthouse in Quebec City on February 21, 2017. THE CANADIAN PRESS/Mathieu Belanger - POOL
Court strikes down consecutive life sentences; mosque shooter has prison term cut

The decision was appealed by both the defence and the Crown

Most Read