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reset_21jan2009_0160 by Patrick Lauke https://flic.kr/p/5UsyVA (CC BY-NC-ND 2.0)

Time to Hit the Reset Button: Canadian Heritage Releases “What We Heard” Report on Online Harms Consultation

Canadian Heritage Minister Pablo Rodriguez released a “What We Heard Report” on the government’s consultation on online harms earlier today. To the government’s credit, the report is remarkably candid as it does not shy away from the near-universal criticism that its plans sparked, including concerns related to freedom of expression, privacy rights, the impact of the proposal on certain marginalized groups, and compliance with the Canadian Charter of Rights and Freedoms. The report provides a play-by-play of these concerns, leaving little doubt that a major reset is required. The government telegraphed a change in approach with the Rodriguez mandate letter, which explicitly stated that the online harms legislation “should be reflective of the feedback received during the recent consultations.”

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February 3, 2022 3 comments News
Open Door Open by Alan Levine https://flic.kr/p/2fvnJXH (Public Domain)

Not Ready for Prime Time: Why Bill C-11 Leaves the Door Open to CRTC Regulation of User Generated Content

Canadian Heritage Minister Pablo Rodriguez introduced the much-anticipated sequel to Bill C-10 yesterday. The minister and his department insisted that the new Bill C-11 addressed the concerns raised with Bill C-10 and that Canadians could be assured that regulating user generated content is off the table. Unfortunately, that simply isn’t the case. The new bill, now billed the Online Streaming Act, restores one exception but adds a new one, leaving the door open for CRTC regulation. Indeed, for all the talk that user generated content is out, the truth is that everything from podcasts to TikTok videos fit neatly into the new exception that gives the CRTC the power to regulate such content as a “program”.

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February 3, 2022 26 comments News
RECOMMENDED! by jm3 on Flickr https://flic.kr/p/5eA3ZU (CC BY-SA 2.0)

The (Still Secret) Online Harms Consultation: What the Government Heard, Part Two

Last week, I posted on the results of this summer’s online harms consultation, which remains shrouded in secrecy as the Canadian government still refuses to disclose the hundreds of submissions it received. That post focused on the common concerns raised in the submissions as pulled from my ongoing blog post that features links to dozens of submissions that have been independently posted. This second post highlights frequently cited recommendations. These recommendations are particularly important given that the mandate letter for Canadian Heritage Minister Pablo Rodriguez indicates that any online harms legislation “should be reflective of the feedback received during the recent consultations.”

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December 21, 2021 9 comments News
Prime Minister of Canada, Justin Trudeau, with Secretary-General, Angel Gurria, during a bilateral meeting in Paris, France by Herve Cortinat / OECD (CC BY-NC 2.0)  https://flic.kr/p/26a54hN

Why the Digital Services Tax Act Violates Canada’s OECD Commitment to a Tax Moratorium

The Canadian government’s decision to move ahead with the Digital Services Tax Act, legislation that will take effect in 2024 should the international agreement at the OECD fail to materialize by that date, is problematic for reasons that extend beyond sparking a trade battle with the United States and potentially leading to billions in tariffs on Canadian goods and services. The plan also appears to violate Canada’s commitment at the OECD, in which all members agreed to a moratorium on introducing new digital services taxes.

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December 17, 2021 3 comments News
Fortune Global Forum 2018 by  John Lehmann/Fortune (CC BY-NC-ND 2.0) https://flic.kr/p/Nn98GR

Should Have Seen This Coming: U.S. Raises Prospect of Retaliation Over Canada’s Digital Services Tax Plans

For the past two years, Canadian digital tax policy has been on a collision course with Canadian trade policy. The Liberal government committed in the 2019 election campaign to a digital services tax primarily designed to target large U.S. technology companies that generate significant revenues in Canada from online advertising and user data. The policy has been adopted in several other countries, repeatedly sparking a response from the U.S. that threatens to retaliate with tariffs on sensitive sectors of the economy. For example, after France announced plans for a similar tax, the U.S. threatened to levy billions in tariffs on French products.

As the trade threats escalate, the effort to strike an international agreement on the issue has gained increasing traction (my Law Bytes podcast last February with Professor Itai Grinberg provides a great backgrounder into the issue). After a preliminary deal was struck in October on an international approach, the U.S. dropped the tariff threat against several countries. Yet as efforts to finalize and implement the deal continue, Canadian Finance Minister Chrystia Freeland announced this week that new legislation will be introduced to create a Canadian digital services tax (this is distinct from digital sales taxes, which are currently in effect).

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December 16, 2021 3 comments News