Facebook announces $8 million for news publishers ahead of expected grilling in Ottawa

Article content

Facebook Inc. pledged Friday to spend $8 million to support news publishing in Canada, just days before a senior executive is to appear in Ottawa to face questions from MPs on matters including compensation of traditional media companies for news displayed on the tech giant’s platform.

Kevin Chan, head of public policy for Facebook Canada, is expected to be grilled by members of the standing committee on Canadian heritage about why Facebook controversially pulled news off its platform in Australia last month as that country was putting the finishing touches on legislation to guarantee publishers would be compensated for featured news.

Heritage Minister Steven Guilbeault is preparing legislation to create a “comprehensive, coherent and equitable digital framework” for publishers and online platforms that is expected to be put forward before the summer break. It is understood to be hewing closely to the Australian model in at least one respect — ensuring that dominant search and social media platforms such Facebook and Alphabet Inc.’s Google cannot cherry pick what news they want to pay for.

Article content

On a company blog where the new three-year funding was announced Friday, Facbeook said the money would be used to “help support the sustainability of the news industry in Canada,” with a clear focus on local reporting, smaller publications, and “under-represented” voices.

In an email, a spokesperson noted that Facebook is open to “commercial deals” with all publishers for access to news — but only the items of its choosing.

“Facebook is not going to pay for news links or content that publishers voluntarily put on our platform,” the spokesperson said. “However, in instances where the Facebook community might benefit from additional access to news links, Facebook would pay to bring those opportunities to our users.”

News publishers have argued that, given the dominance of Facebook, they have little choice but to use the distribution channel it provides and should share in the financial benefits.

John Hinds, president of News Media Canada, said Facebook’s latest commitment for Canada — part of a $1 billion worldwide pledge over the next three years — makes a case for legislation to ensure fair compensation.

He noted that a chunk of the $8 million Facebook has pledged is already earmarked to extend an existing local news initiative, which will leave little to spread across the rest of the Canadian industry.

Article content

“In Australia, where there is legislation to ensure fair compensation, Facebook will be contributing upwards of $100 million a year,” said Hinds, whose organization represents news publishers across Canada.

“Legislation is the only way to ensure publishers are fairly compensated by Facebook and the other platforms for the use of their news content.”

Members of the all-party heritage committee are expected to question Facebook’s Chan about other issues on Monday, including the tech platform’s response to and responsibility for policing online hate speech.

The Canadian government is planning to introduce legislation shortly that would make good on Prime Minister Justin Trudeau’s pledge to force the tech platforms to promptly remove illegal content including hate speech.

Committee members are also expected to ask Chan about Facebook’s ties to the Liberal government, an ongoing line of questioning that has scrutinized lobbying and the movement of employees between government and the tech giant.