
July 18, 2026
News publishers around the world are about to get their asses handed to them by AI companies. And they know it.
What to do? Well there’s Plan A and there’s Plan B.
Plan A is for news publishers to combat the AI chatbots’ illegal scraping of digital news content by filing lawsuits seeking license payments. On that score, sympathetic legislatures could move the needle on compensating news publishers faster, more lucratively, and more broadly to all news publishers by legislating clear copyright ownership of the content that AI chatbots are ingesting without paying for it.
Something like Plan A has been tried before, as you recall.
Over the last decade, the European Union, Australia and Canada have legislated a fair market in news licensing payments from Google and Meta with mixed success.
Landing in Canada as the Online News Act, Bill C-18 was a classic anti-trust remedy to the monopoly power held by Google and Meta over the ad-supported distribution of digital news hyperlinks and snippets on search engines and social media.
The legislated backstop of commercial arbitration meant that the “net exchange value” —-an independent measurement of the offsetting monetary value of publishers’ news content versus Google and Meta’s traffic referrals back to news sites — rebalanced bargaining power over news licensing payments from the monopolists in favour of hundreds of news publishers.
Once Bill C-18 became law, Google opted to pony up $100 million annually to Canadian news publishers. Deciding not to face the music of an independent assessment of net exchange value, Meta banned mainstream news from appearing on Facebook and Instagram.
Despite American trade pressure, Mark Carney hasn’t given away our Online News Act. But his obeisance to Donald Trump on the digital services tax —introduced to counteract Big Tech tax avoidance — and his climb down on the CRTC’s levies on Netflix and the foreign streamers are unnerving to say the least.
By contrast, Australia’s PM Anthony Albanese has been outspoken and defiant while moving slowly on implementing a new law that would put down the same mutiny that Meta staged in 2024 when its first and only licensing deal with Australian publishers expired.
In a recent speech at Sydney University, Albanese outlined a vision on AI that might have been cribbed straight from Carney’s “AI for All” national policy until he went where Carney wouldn’t goal: support for copyright and creators’ IP:
But let me make this crystal clear: not everything produced in Australia is up for grabs. Not at all. Australian writers, musicians, artists and journalists must retain ownership and control of their work. Our laws will spell that out, plain as day. An artist’s creative endeavour is their work and their property. No company should use Australian books, music, art or news to build or train AI without the artist’s control. That includes the artist’s control of the price and value of their work. Anything less, is theft. No country has got this right yet. Nowhere do artists or rights holders have sufficient control of their work, when it comes to AI training.
That is why the best way to secure the strongest copyright protections for Australian artists is for Australia to be active and involved. To build the best possible solution for ourselves. And to preserve the creativity that is fundamental to who we are to our national identity and the journalism that is essential to our democratic society.
Stirring words, but talk is cheap. Plan A on AI news licensing is still just a plan. Remember how hard it can be to execute.
I would be surprised if news publishers aren’t spending every day contemplating a Plan B, i.e. how to survive AI without government intervention.
The question is what kind of ingenuity and resources can news publishers bring to the table that would change the balance of commercial bargaining power between them and the AI companies? How do news publishers negotiate licensing deals that give them fair compensation, brand visibility, and drive audience traffic back to their proprietary websites?
One of many ideas is news companies charging AI chatbots micropayments instead of selling them all-access licenses. Previously, pay-per-article failed as a news subscription strategy because, as Substacker Ulrike Langer puts it, “micropayments turn every act of consumption into a small purchasing decision, and humans will pay extra [in the form of an all-access monthly subscription] to be spared that unwelcome feeling.”
But could it be different if the news subscribers were emotionless AI scrapers trolling for just the right on-time content to satisfy the latest AI prompt? Langer isn’t sure, but whatever the potential in that kind of innovation might be, it surely isn’t a game changer for news publishers (although perhaps AI micropayments would be better than nothing for the small news publishers likely to be shut out of big licensing deals).
Making a real difference in this unequal contest of commercial leverage may depend upon the brand power of trusted news outlets. If AI companies want their own subscribers to trust their news content over the information offered by competing AI chatbots, they will pay bigger licensing fees to news organizations that are hitting it out of the park on audience trust.
This graphic from a recent academic study, the “The News Canadians Actually See,” illustrates how deeply skeptical Canadians remain about getting their news from an AI chatbot instead of traditional media.

We should probably assume that Plan B is only a plan for the very best and biggest news organizations.
That brings us back to Plan A, which is a legislative intervention to rebalance the bargaining power between Big Tech and Little News.
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Speaking of hitting it out of the park on brand trust, I’ve been opining about trust in news journalism in my last two posts and perhaps I should stop. But not just yet.
South of the border, Big Tech titan Peter Thiel is bankrolling a couple of AI businesses doing interesting things with journalism.
State Affairs is a news organization that hires journalists to report from US state legislatures. It feeds their reporting into an AI news product. In other words, it’s a hybrid human/AI news outlet (see Plan B, above).
State Affairs’ co-founder Evan Burns told The Washington Post that “AI can’t build sources. It can’t ask follow-up questions. It can’t go knock on the doorframe of the chief of staff of the whatever.”
Less altruistically, the media-hostile Thiel is also the money behind The Primary, an AI-fueled rating agency for news organizations and individual journalists. The Primary publishes a trust scorecard. Here are the ratings of news outlets and here is another scoring of bylined journalists (including those that report on the AI companies that Thiel owns).
The Primary scores don’t seem outrageously skewed although they definitely suggest a right-of-centre standpoint (for example, the New York Times is rubbished).
The idea of a media watchdog keeping tabs on journalist watchdogs is hardly new: media criticism podcasts and columns abound. But the marriage of media criticism and AI tools is new.
AI analysis of bias in media is just getting off the ground in Canada. A few months ago, Substacker David Clinton of The Audit published an AI-assisted review of CBC News coverage. Honest Reporting Canada did something similar on the “emotional sympathy” extended to various news subjects and public actors in CBC’s coverage of the Gaza conflict.
There are also media websites like Briefly News which appears to use AI tools to rate global news companies for bias and trust. You will find two Canadian outlets there, the CBC and the Globe & Mail. The site has no masthead, corporate information or country of origin.
The idea of a machine intelligence stepping forward to referee disputes over news bias has its allure for anyone looking to comment upon trustworthy news journalism.
It would be premature to say that right now that AI tools can reliably improve our ability to measure fairness in news journalism. But I have a feeling we’re going to be talking about it a lot more.
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In the centrifuge of public policy and competing priorities, sometimes governments do things at cross purposes.
Take the example of the federal government and its historic support for small, mostly rural community newspapers. Since before Confederation, we have subsidized news outlets. At first it was through discounted postal rates and subsequently through direct subsidies in the Canada Periodical Fund, all pre-dating the more controversial journalism labour tax credits for daily and mostly urban newspapers.
I don’t need to re-tell the story of how the advertising market was captured by digital platforms and undermined the business model of community newspapers, subsidized as they were. I reckon the federal government is now paying 50 cents on each dollar of publisher costs.
On a completely separate track from newspapers (and under the aegis of a different government department), Canada Post met its own paradigmatic shift in its legacy business model by going all in on door-to-door distribution of retailer ad flyers, piggybacked on its regular mail delivery.
Since its introduction in the 1990s, the “Admail” Canada Post program has undercut newspaper companies who depend on flyer distribution as a major stream of revenue, offering free editorial content wrapped around local retail advertising inserts. There’s a chapter and verse history of the next thirty years in a News Media Canada op ed published today.
Fast forward, the problem just got worse. Enter the Montreal-headquartered Transcontinental, a national printer and distributor of local retail flyers through Raddar, its printing and home delivery program. Instead of a free newspaper and a bundle of flyer inserts, Raddar prints a single aggregated advertising flyer.
This spring Raddar struck a deal with Canada Post to break into new markets across the country by contracting for national Admail delivery on a discount offered by the Post Office at a rate that local news publishers can’t match.
This week the Winnipeg Free Press announced it is laying off its network of 817 distribution contractors that support its flyer business and shuttering the companion editorial product, the Free Press Community Review. That cedes the 200,000 local household market to the federally-owned Canada Post and Transcontinental. With that, goes 10% of the Free Press’s overall revenue, according to its publisher.
This looks like a case of cross-purposed public policy: the federal government’s revenue strategy for Canada Post submarines a major source of commercial revenue of the news publishers whom it subsidizes with federal money.
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A few months ago I reviewed Richard Stursberg’s Lament for a Literature. It’s a policy pitch for a better federal policy on supporting Canadian book publishers and authors.
As a follow up on that I think you will enjoy reading Ken Whyte’s last two Substacks on the same topic here and here.
The acid-tongued commentary asks why culture and identity minister Marc Miller asked his civil servants for an update on Canadian book publishing policy and got back advice that ignored whether it was effective. The answer might be that the minister didn’t ask that question, but perhaps he will now.
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This post is copyrighted by Howard Law, all rights reserved. 2026.
























