The CRTC is proposing Cost Recovery Regulations that would apply to the largest online platforms that distribute news content as it continues to set up a framework around implementation of the Online News Act.

With the vast majority of the commission’s operations funded by fees charged to companies it regulates, it’s now proposing additional cost recovery rules in light of work required under the new Act. In a call for comments on the suggested measure, published Thursday, the CRTC proposes charging the largest digital operators to fund that new work, stipulating it will not collect from news businesses.

Cost recovery would be calculated based on gross Canadian revenues the operator generates, directly or indirectly, from making news content available on any “digital news intermediary” or DNI in any given calendar year. Operators would provide that information to the commission in an annual return. The commission says the proposed regulation would prevent the “double-counting” of the same revenue within the definition of “news revenue” by excluding any amount the operator receives from another operator also subject to the regulations.

Any monies collected under the regulations cannot go beyond the commission’s actual costs to oversee the Act, with any invoiced amount exceeding actual costs to be adjusted on the following year’s invoice. The target date for the proposed cost recovery to come into force is April 1, 2025, in time for the 2025-26 fiscal year.

The deadline for comments is June 25.

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