Canada's digital news revolution: unveiling the Online News Act and proposed GIC regulations

Tashi Farmilo

The Online News Act, which received Royal Assent on June 22, 2023, is set to bring about transformative changes in Canada's digital news landscape. This legislation aims to address the challenges and opportunities presented by digital platforms in the dissemination of news and information. Recently, the government unveiled proposed Government in Council (GIC) regulations to guide the implementation of this groundbreaking Act.

Digital platforms have played an increasingly pivotal role in how Canadians access news sources, drastically reshaping the media landscape. In 2022, online ad revenues in Canada reached a staggering $14 billion. Even more striking is the fact that 69% of Canadians access news online, with 11% of them directly paying for the news they consume. Google and Meta, two tech giants, hold a dominant 80% share of the market for online news access.

However, this digital transformation has also had its casualties. From 2008 to 2023, a concerning 474 news outlets across Canada have closed their doors, raising questions about the sustainability of traditional journalism in the digital age.

The Online News Act is underpinned by the recognition that the production and access to trustworthy news and information are essential pillars of a thriving democracy. This legislation seeks to safeguard the integrity of news sources, combat misinformation, and ensure that Canadians have access to reliable and diverse news content.

The recently unveiled GIC regulations provide crucial guidance on how the government plans to implement the Online News Act effectively. Some key provisions include:

• Registration of Online News Platforms: The proposed regulations mandate that online news platforms register with a designated regulatory authority. This move aims to enhance transparency and accountability in the digital news space.
  
  
• Content Standards: Platforms that register are expected to adhere to stringent content standards, which prohibit the dissemination of hate speech, fake news, and other harmful content. These standards are designed to protect Canadian citizens from the potential harms of misinformation.
  
  
• Accountability Measures: To ensure compliance, the regulations introduce measures such as mandatory reporting of content removals, disclosure of algorithms used for content promotion, and demographic data of users. These measures are intended to hold platforms accountable for their actions and facilitate ongoing evaluation of their impact.
  
  
• Oversight and Enforcement: The proposed regulations empower the regulatory authority to monitor and enforce compliance with the Act. Non-compliance may result in penalties, fines, or even the suspension of a platform's registration.

Appeals Mechanism: Recognizing the importance of due process, the regulations outline an appeals mechanism through which online news platforms can challenge decisions made by the regulatory authority.

Engagement with stakeholders and the public is a critical part of the regulatory process. The government has set up the Online Regulatory Consultation System (ORCS) to facilitate feedback on the proposed regulations. Canadians are encouraged to comment on these regulations by visiting gazette.gc.ca. This opportunity for public input is a crucial step in ensuring that the regulations strike the right balance between preserving freedom of speech and protecting the public interest.

As the implementation of the Online News Act progresses, and the proposed regulations undergo further scrutiny, Canada finds itself at the forefront of global efforts to address the challenges posed by the digital news era. Balancing the need for free expression with the imperative to combat misinformation and protect the public interest will undoubtedly remain a complex and evolving challenge.