Introduction

In a landmark move, Canada has become the first country to mandate payment from Google and Meta for news content. Under the Online News Act (Bill C-18), digital platforms must negotiate fair deals with news publishers for linking to or displaying their journalism. This unprecedented law aims to shore up struggling Canadian news outlets, ensuring they are compensated for the value they create online. As of April 1, 2025, the Canadian Radio-television and Telecommunications Commission (CRTC) began enforcing cost-recovery fees on Google, while Meta opted to block news entirely rather than pay. This article explores the origins, requirements, industry reactions, and wider implications of Canada’s bold stance.

Origins of Bill C-18: The Online News Act

In response to declining revenues and a shrinking newsroom workforce, Canada’s Parliament introduced the Online News Act (Bill C-18) in late 2022. The bill passed the House of Commons and Senate in June 2023, receiving royal assent on June 22, 2023 en.wikipedia.org. It requires “digital news intermediaries”—including search engines and social networks—to bargain with Canadian news businesses and compensate them for reproducing or linking to their content. The law’s goal is clear: create a sustainable framework so that digital platforms contribute fairly to the journalism ecosystem they rely on.

Key Provisions of the Legislation

Bill C-18 establishes:

1. Negotiation Framework: Platforms and publishers must engage in good-faith bargaining within timelines set by the CRTC.
2. Mandatory Code: If negotiations fail, an arbitration process enforces terms to ensure payment.
3. Asymmetric Position Rule: Only very large platforms meeting user and revenue thresholds are covered, specifically Google and Meta.
4. Scope of Payment: Applies to links, previews, and embedded news content—not full articles en.wikipedia.org.

The CRTC developed the detailed bargaining code through consultations in late 2023, publishing final regulations in early 2025 and triggering enforcement from April 1, 2025 reuters.com.

Google’s Response: A $100 Million Annual Pledge

After months of negotiations and public debate, Google struck a deal to pay C$100 million annually, indexed to inflation, to Canadian news outlets through the newly formed Canadian Journalism Collective (CJC) reuters.com. Google chose CJC—an upstart collective founded in early 2024—to administer the funds. While this move exempts Google from certain mandatory arbitration processes, it drew criticism when questions arose about the CJC’s governance and distribution speed thelogic.co. Nonetheless, most major publishers welcomed the agreement as an essential revenue boost and a way to restore some balance in digital advertising.

Meta’s Reaction: Blocking News to Avoid Payments

In stark contrast, Meta (owner of Facebook and Instagram) deemed Bill C-18’s premise “fundamentally flawed” and chose to block all news content in Canada rather than enter negotiations or make payments about.fb.com. Since late 2023, Canadian users have been unable to view or share news links on Meta platforms—an unprecedented blackout that persists in 2025. Meta argues that news sharing drives user engagement and that publishers benefit from free traffic, but critics counter that Big Tech has long profited from news without sharing revenues niemanlab.org.

How the CRTC Imposed Cost-Recovery Fees

Beyond direct payments, Canada’s regulator took steps to fund the law’s enforcement. On February 27, 2025, the CRTC announced a fee on Google to cover the costs of administering Bill C-18. This levy, effective April 1, 2025, may vary yearly and has no fixed cap reuters.com. Google objected, calling the approach “unfair” and warning it places the entire cost burden on one company. Yet the CRTC maintains that platforms benefiting from linking to news must underwrite the regulatory process that supports fair negotiations and dispute resolution.

Impact on Canadian News Publishers

Revenue Injection for Legacy Media

For established newspapers and broadcasters, Google’s annual payments represent a significant new revenue stream. Some outlets report that the extra funds cover up to 10–15% of their digital operations budgets. These resources help sustain investigative journalism, maintain reporters’ salaries, and invest in multimedia storytelling.

Challenges for Smaller and Digital-First Outlets

However, Bill C-18’s rollout has not been uniformly positive. Meta’s news ban disproportionately hurts smaller, digital-native publishers that rely on social media for traffic. Without Facebook referrals, many independent sites saw pageviews drop by as much as 40% in late 2023 niemanlab.org. The uncertainty around CJC’s governance and slow fund disbursement also created cash-flow shortages for local outlets.

Broader Economic and Political Tensions

Canada’s digital news bargaining code sits within a web of international trade and regulatory disputes. The law’s enforcement follows on the heels of Canada’s Digital Services Tax, which imposes a 2.5% surcharge on ad revenues for large online platforms en.wikipedia.org. U.S. officials have raised concerns that these levies unfairly target American tech firms, fueling cross-border tensions over trade and regulatory sovereignty. Nevertheless, Canada continues to argue that a robust public information ecosystem is vital for democracy and that digital platforms must play their fair part.

Lessons from Australia and the EU

Canada did not chart this path alone. Australia enacted a similar News Media Bargaining Code in 2021, leading to deals where Google and Meta paid local publishers hundreds of millions of Australian dollars. The European Union’s forthcoming Digital Markets Act also includes provisions to address platform-publisher relations. Observers note that Canada’s framework combines negotiation mandates with a unique fee-recovery mechanism—a hybrid approach that may influence other jurisdictions weighing news-related regulations.

What Comes Next?

As the first full year of enforcement unfolds, key developments to watch include:

• Revised CJC Governance: Calls for greater transparency and inclusion of small publishers.
• Meta’s Potential Re-Entry: Negotiations or legal challenges that could restore news to Facebook and Instagram in Canada.
• Expanded Platform Coverage: Debates over whether to include other digital intermediaries in the law’s scope.
• Impact Studies: Academic and industry reports measuring how the act affects news diversity, quality, and public access to information.

Canada’s bold experiment will inform global efforts to rebalance the digital news economy.

Conclusion

Canada’s decision to mandate payment from Google and Meta for news under Bill C-18 marks a historic shift in the relationship between Big Tech and journalism. By requiring good-faith bargaining, offering arbitration, and imposing cost-recovery fees, Ottawa has asserted that digital platforms must contribute to the media ecosystem they rely upon. Google’s agreement to pay C$100 million annually provides crucial funds for legacy outlets, while Meta’s news ban highlights the tension between regulation and platform strategy. As the law takes full effect and other countries consider similar measures, Canada’s experience will serve as a global touchstone for how democracy, commerce, and digital innovation can coexist in the 21st century. By choosing to value news, Canada hopes to secure a sustainable future for journalism—and set a precedent that others may follow.