The House of Commons is currently considering legislation to reverse the decline in Canadian journalism.
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Today, however, publishers’ content makes its way to readers increasingly through the reach of platforms like Google and Facebook, who collect and control the data about publishers’ own readers. Rather than going to individual advertisers to sell online ads, publishers go to online ad marketplaces that serve as arms-length auctions, where the main value to advertisers is the detailed data on readers.
But this is not about technology, but rather a difference of bargaining power. Individual newspapers cannot walk away from the platforms, or else they lose a large amount of their readership and advertising revenue. Google and Facebook are the only option for many publishers, whereas the platforms can ignore the demands of any one publisher. And if publishers were to band together as a group to make demands for compensation from the platforms, they would be violating the law.
The competition exemption of the Online News Act is to rebalance this relationship by allowing publishers to group together to negotiate for fairer compensation from the platforms, which are using and benefiting from their content with minimal compensation. Until and unless the concentrated power of the tech platforms is reined in, the solution is to allow publishers to have greater bargaining power when dealing with them.
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