The government this morning released the final Online News Act regulations, effectively gutting the law in order to convince Google to refrain from blocking news links in Canada and to fix some of the legislative mistakes that have been apparent from the start. While proponents of the law will point to the $100 million contribution from Google as evidence of success, privately most in the industry and government acknowledge the obvious: Bill C-18 was deeply flawed and a massive miscalculation that has created far more harm than good. Canadian Heritage Minister Pascale St-Onge seemingly agrees as she was willing to make changes that were derided by the government throughout the legislative process. Indeed, by the time St-Onge took over the file that was a challenging salvage job, Meta’s $20 million in news deals were lost and blocked news links on Facebook and Instagram was a reality. The prospect of the same happening with Google was too much for the industry and the government since the lost deals would have been at least double that amount (many believe in the $40-50 million range) and lost news links in search would have been catastrophic.
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The Most Dangerous Canadian Internet Bill You’ve Never Heard Of Is a Step Closer to Becoming Law
After years of battles over Bills C-11 and C-18, few Canadians will have the appetite for yet another troubling Internet bill. But given a bill that envisions government-backed censorship, mandates age verification to use search engines or social media sites, and creates a framework for court-ordered website blocking, there is a need to pay attention. Bill S-210, or the Protecting Young Persons from Exposure to Pornography Act, was passed by the Senate in April after Senators were reluctant to reject a bill framed as protecting children from online harm. The same scenario appears to be playing out in the House of Commons, where yesterday a majority of the House voted for the bill at second reading, sending it to the Public Safety committee for review. The bill, which is the brainchild of Senator Julie Miville-Dechêne, is not a government bill. In fact, government ministers voted against it. Instead, the bill is backed by the Conservatives, Bloc and NDP with a smattering of votes from backbench Liberal MPs. Canadians can be forgiven for being confused that after months of championing Internet freedoms, raising fears of censorship, and expressing concern about CRTC overregulation of the Internet, Conservative MPs were quick to call out those who opposed the bill (the House sponsor is Conservative MP Karen Vecchio).
The Law Bytes Podcast, Episode 188: Consumers, Competition or Corporate Cash Grab? – My Bill C-11 Appearance at the CRTC
The CRTC just concluded a three week hearing on Bill C-11 with its primary focus on the prospect of mandating interim payments by Internet streaming services. The result was predictable as just about everyone made their way to Gatineau to make their case for cash. I appeared for the first time before the CRTC where argued that it should prioritize competition, consumer choice and affordability, recognizing that the emerging system brings with it risks of market exit or higher prices. This week’s Law Bytes episode goes inside the Commission hearing for my opening statement and exchanges with the panel of Commissioners.
My CRTC Appearance on Bill C-11: Why Isn’t the Commission Concerned with Competition, Consumer Choice, and Affordability?
The CRTC’s Bill C-11 hearings are in their third and final week as a steady stream of broadcasters and producers make their way to Gatineau to urge the Commission to force Internet streamers to hand over cash in a giant cross-industry subsidy scheme designed to support everyone from small producers to Bell’s news division. As the witnesses take turns seeking the mantle that they are facing the biggest crisis (even as there is record film and television production in Canada and broadcasters stand to be the biggest beneficiary of the Online News Act), there has been practically no interest or discussion of the risks to consumers and competition that could come from significant new regulatory costs.
I set out to change that yesterday in my appearance before the Commission. It was my first time to appear as a witness before the CRTC and I used the opportunity to emphasize the real risks of reduced competition and higher costs that can come with mandated payments that exceed global standards. Further, I argued that the Commission should not establish interim payments at all, noting that it was more appropriate to address all of the outstanding Bill C-11 regulatory questions before looking to streamers to start cutting cheques.
The Law Bytes Podcast, Episode 187: Jeff Elgie on What the Bill C-18 Deal With Google Means for the Future of the Canadian News Sector
The Canadian government tried to salvage the Online News Act last week as its struck a deal with Google that will bring in $100 million to support the news sector and remove concerns about blocked news links. The government had to overhaul its own law in order to reach the agreement, tossing aside most of the core elements in favour of a fund-style single payment from Google. The reaction to the agreement from the news sector has been mixed at best with relative silence from many supporters and outright opposition from the likes of Torstar.
So what to make the of the deal and what comes next? Jeff Elgie is the CEO of Village Media, one of the largest independent, digital-only news outlets in Canada. He joins the Law Bytes podcast to walk though his participation in the process, reaction to the agreement, and thoughts for the future.
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Is Meta Offside the Online News Act? The CRTC Wants to Know.
