Last month, the Canadian Federation of Library Associations released a much-needed statement that sought to counter the ongoing misinformation campaign from copyright lobby groups regarding the state of Canadian copyright and the extensive licensing by libraries and educational institutions. I had no involvement whatsoever with the statement, but was happy to tweet it out and was grateful for the effort to set the record straight on what has been a relentless misinformation campaign that ignores the foundational principles of copyright law. Lobby groups have for years tried to convince the government that 2012 copyright reforms are to blame for the diminished value of the Access Copyright licence that led Canadian educational institutions to seek other alternatives, most notably better licensing options that offer greater flexibility, access to materials, and usage rights. This is false, and when the CFLA dared to call it out, those same groups then expressed their “profound disappointment” in the library association.
News
Why the Government’s Bill C-18 Draft Regulations Are Stacked Against Small, Independent, and Digital-First Media Outlets
The problems with government’s Bill C-18 draft regulations involve more than just what amounts to a 4% link tax on Google and Meta alongside little effort to ensure the resulting revenues are used to support spending on journalists and news content. As noted in previous posts, the draft regulations put an end to the claim that the Online News Act involves compensation for news creation since the standards are now simply a function of Internet platform revenues, not news production costs. Given the global implications of a 4% tax on revenues to support media, that approach likely further cements Meta’s decision to comply with the law by stopping news links and increases the chances that Google follows suit.
But the concerns with the draft regulations do not end there. Indeed, the regulations revive the frustration of many smaller, independent and digital-first news outlets who feared that Bill C-18 would harm them competitively by receiving less support relative to larger companies such as Bell, Rogers, the CBC, and Postmedia or be excluded altogether.
Why The Government’s Bill C-18 Draft Regulations Do Little to Ensure More Spending on Journalists or News Content
The government released its draft Bill C-18 regulations on Friday ahead of the Labour Day weekend, but ironically those regulations do very little to ensure that new funding will be allocated toward employing journalists. While the regulations establish what amounts to a minimum 4% link tax on Google and Meta if they link to news content, they set no minimum requirements to spend the resulting revenues on journalists or news content. In fact, the government specifically dictates to the CRTC that the legislative requirement that an “appropriate portion of the compensation will be used for the production of local, regional and national news content” will involve no minimum amount and the agreements need only reference that “some” of the compensation will be used for that purpose. As a result, in the best case scenario for the government in which the Internet platforms pay for links by reaching commercial agreements with news outlets, the big beneficiaries such as Bell, Rogers, the CBC, and Postmedia would be free to spend the vast majority of the money generated by those deals on executive salaries, debt repayment, or any other purpose.
A 4% Link Tax: Why the Government’s Draft Bill C-18 Regulations Just Increased the Chances of No News on Meta and Google in Canada
The government is releasing its draft regulations for Bill C-18 today and the chances that both Google and Meta will stop linking to news in Canada just increased significantly. In fact, with the government setting an astonishing floor of 4% of revenues for linking to news, the global implications could run into the billions for Google alone. No country in the world has come close to setting this standard and the question the Internet companies will face is whether they are comfortable with the global liability that would see many other countries making similar demands. The implications are therefore pretty clear: there is little likelihood that Meta will restore news links in Canada and Google is more likely to follow the same path as the Canadian government establishes what amounts to 4% link tax from Bill C-18 on top of a 3% digital services tax and millions in Bill C-11 payments.
Why Heritage Minister Pascale St-Onge Doesn’t Seem to Understand How Bill C-18 Works
Heritage Minister Pascale St-Onge went on a media offensive late last week, granting interviews to a wide range of publications. St-Onge noted that she had “positive” talks with Google and Meta that she hoped would result in a compromise and improbably claimed concern for users’ rights to share information online, an odd position given that Bill C-18 undermines the free flow of information online with its mandated payments for links approach. St-Onge got the headlines she was no doubt looking for, but it was pretty obvious that not much had changed, with Meta confirming that she had requested the meeting and that it is continuing to end news availability in Canada. While that was typical of the English-language coverage, St-Onge’s comments to French language outlets such as La Presse and Journal de Montreal added another dimension, with the Minister suggesting that companies should negotiate deals by year-end in order to become “exempt” from the law.
St-Onge may want to leave the impression that there is an easy out for the tech companies, yet the reality is those comments fundamentally misunderstand how Bill C-18 works.
Recent Posts
The Law Bytes Podcast, Episode 231: Sara Bannerman on How Canadian Political Parties Maximize Voter Data Collection and Minimize Privacy Safeguards 
The Law Bytes Podcast, Episode 230: Aengus Bridgman on the 2025 Federal Election, Social Media Platforms, and Misinformation 
The Law Bytes Podcast, Episode 229: My Digital Access Day Keynote – Assessing the Canadian Digital Policy Record 
Queen’s University Trustees Reject Divestment Efforts Emphasizing the Importance of Institutional Neutrality 
The Law Bytes Podcast, Episode 228: Kumanan Wilson on Why Canadian Health Data Requires Stronger Privacy Protection in the Trump Era
