Hon. Julie Miville-Dechêne: Senator Gold, as you know, Meta has blocked hyperlinks to news sites on its platform, and Google recently reiterated its plan to do the same when Bill C-18, the Online News Act, comes into force at the end of December.

Our media outlets are suffering from these decisions. They are less visible and have lost up to half of their users. Many are devastated by the apparent impasse between the government and Google about Bill C-18 regarding online news. Even the organization News Media Coalition has reversed its position and is now calling on the Minister of Canadian Heritage to accept some of Google’s demands in the final regulations that will be adopted. Google, however, believes that the fundamental problems are in the legislation itself.

My question is this: Is the government willing to amend Bill C-18 in order to find a solution to this impasse?

Hon. Julie Miville-Dechêne: Honourable senators, I rise at second reading of Bill C-18, the online news bill. This bill is important to me personally because I spent many years in the world of journalism.

For starters, the crisis is real. Over the past 14 years, 469 newspapers and news organizations in Canada have closed up shop. The majority of the surviving media organizations have been through cuts that have eviscerated newsrooms. Bill C-18 is clearly not a solution in search of a problem. We really do have a big problem, and the government is right to tackle it.

There are many reasons for this crisis, but nearly all of them have to do with the internet revolution. Over the past 25 years, traditional media, which used to have a monopoly on broadcasting information, lost their exclusivity to multiple competitors: online ads, foreign media, government sites, streaming platforms, countless specialized sources for things like weather forecasts, sports scores and financial news, audio and video-sharing platforms, news and opinion blogs and, lastly, social media platforms, which pounded the last nail into the coffin.

Today, traditional media organizations are facing a profound crisis that affects both their profitability, now that advertisers have left, and the value they add, since so much content is available elsewhere.

Some say that the media has not been able to adapt and is simply a victim of technological change, similar to how the typewriter disappeared when computers became ubiquitous. Others add that the traditional media outlets are the victims of their own inertia and arrogance, and that they deserve their fate.

It gives me no pleasure to say this, but there is some truth to that. Many didn’t see the threat coming, and for a long time, they believed that the competition from online media and social networks, sometimes called the “barbarian invasion,” had no value and would not interest anyone. Accustomed to the comfort of their monopoly, some media outlets looked down on new platforms, different models and alternative paths, and were unwilling to take a hard look at themselves, rethink their offerings and adapt.

However, that is not the whole story. Many Canadian media organizations, big and small, young and old, have been trying out innovative approaches for 20 years. In Quebec in particular, the media landscape changed dramatically with the emergence of not-for-profit agencies or cooperatives, as in the case of Les Coops de l’information. La Presse has gone exclusively digital, and the hybrid subscriber model is working for Le Devoir. Experts such as Sue Gardner and Jean-Hugues Roy have noted that a lot of experiments are under way, and even though there are no conclusive results yet, this could be the key to the solution.

However, we mustn’t confuse traditional media with journalism. We can criticize our media and also have legitimate concerns about the future of journalism. While some organizations have lost their aura and their influence, the importance of journalism has remained intact and is as big as ever.

Whether reports address the need to expose lies, scandals, corruption or cronyism, the essential character of journalism is no less great today than it was 25 years ago. In any free society, journalism is a public good that needs to be protected and supported. As the Washington Post‘s slogan goes, “Democracy Dies in Darkness.”

That being said, investigative work or analysis has the same public value regardless of whether it is done by CBC/Radio-Canada or by a new online journalism platform and whether it is broadcast on the radio, on television, on Twitter or on Facebook.

What is important to Canadian society is that organizations, no matter which ones, have the resources to deliver quality journalism and that the content reaches the public. In other words, Canada needs a robust and diverse news ecosystem that fulfills its role as the watchdog of democracy.

With Bill C-18, the government is proposing a response to the financial difficulties facing journalism in Canada. The government’s proposed solution is quite simple and is directly inspired by the Australian model. Given that the media have lost their advertising revenue to major platforms such as Facebook and Google, these companies should pay the media to publish their content. It is a pragmatic solution. Rich companies will support companies that have become poor.

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For some, Bill C-18 is nonetheless on the wrong track because it is based on a fiction, namely, that Google and Facebook “hurt” the media by making their content available. Media expert Sue Gardner sums up this criticism well:

. . . that premise makes no sense. We know that because news publishers have always been able to opt out of appearing in Google search results, and they don’t. In fact they do the opposite: they vigorously compete to maximize their presences on Google and on Facebook. News publishers want to appear on those platforms, because that’s where people are finding news.

For these critics, the reality is that Google and Facebook offer their users a huge variety of content — of which the media is only a small portion — and the media profit more from the platforms’ referencing than the latter profits from news content. It is possible, but nobody knows. The figures are not public.

The solution for some media experts would be to tax Google and Facebook and set up an independent fund to support journalism.

In an ideal world, setting up a fund would be an easier option, but in reality this is not the avenue the government has chosen for reasons that have to do, apparently, with our trade agreements. As senators, we are called upon to vote on the bill before us. It is possible to improve it, but impossible to rewrite it in such a fundamental way.

I see a number of issues to be addressed in our review of Bill C-18.

First, there is a fundamental question of the expectations of the parties. For large digital platforms, negotiations should focus on the commercial value of the content and services exchanged. In other words, what is the value of news content for Google and Facebook, and how much revenue do those platforms generate for news organizations? For the media, on the other hand, the logic seems different. Some consider that the major platforms should finance up to 30% of their operating costs. This approach is more likely a subsidy than a commercial deal.

To align the expectations of the parties in future negotiations, it would be useful to clarify the objectives of the bill.

Then there is the issue of eligible media. Amendments in the House of Commons have already broadened the admissibility criteria to include small, non-profit community and Indigenous outlets, including those owned by journalists. These broadened criteria mean that we went from about 200 to more than 650 organizations potentially admissible under Bill C-18. This is a welcome expansion because the important thing is to support journalism no matter where it is practised, and not to support only mainstream media. On the other hand, we must ensure that by broadening the scope, we do not open the door to people who do not practise real journalism, but who focus instead on lobbying, fictional or intimate narratives, personal growth or entertainment.

Questions also arise regarding the platforms targeted by Bill C-18. Even though the definition of “digital news intermediary” in the law is very broad, we know that it only covers Facebook and Google at the moment. But we also have to think about the future. Already, Facebook is threatening to block the sharing of Canadian news on its platform if Bill C-18 is adopted. If Facebook carries out the threat, will the bill only target Google? In that case, will this new financing mechanism for Canadian media depend on only one foreign platform? This would be a peculiar situation.

It will also be important to consider the use of funds received by the media. This is a very delicate question, because the government does not want to interfere too much in what it presents as private negotiations. This is a consequence of the approach adopted. That said, the bill won’t be of great assistance to journalism as a public good if the amounts received from Google and Facebook are directed to shareholders or interest payments rather than to hiring journalists, upgrading platforms and to conduct investigations. Much more transparency is needed in this bill.

Questions also arise about the long-term viability of an approach that makes Canadian media partially dependent on foreign private companies that can change or disappear at any time.

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In conclusion, Bill C-18 addresses an issue that has a real impact on the democratic health of our country.

Today, even innovative new platforms can’t be profitable without public support, with some exceptions. Excluding CBC/Radio-Canada, many newsrooms are hanging on by a thread.

The Transport and Communications Committee, of which I am a member, will have its work cut out for it. We will have to come to grips with the implications and its limitations of the bill, and perhaps suggest improvements. As with Bill C-11, Bill C-18 is a legislative foray into the ever-changing world of the internet. In the medium term, it is difficult to assess the impact of the measures being put forward. There will inevitably be a process of trial and error, and adjustments will be necessary. However, in my opinion, this effort is certainly more commendable than inaction.

Thank you.

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