The government’s two big Internet bills – Bill C-11 and Bill C-18, both made significant advances late last week. The Senate Transport and Communications committee concluded months of hearings on Bill C-11 by agreeing to about 25 amendments, notably including a change to the scope of user content regulation that […]
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Money for Nothing: Government Quietly Expands Bill C-18 Eligibility to Broadcasters That May Not Even Produce News Content
Later today, the Canadian Heritage committee will continue its clause-by-clause review of Bill C-18, the Online News Act. The committee is virtually certain to expand the eligibility of news outlets, responding to concerns that the current criteria may exclude smaller, independent outlets from benefiting from the bill’s mandatory payment/arbitration system. However, earlier this week, just as the committee was hearing that the bill covers quotes with links to news content by users in Facebook posts, it quietly expanded the scope of the definition of “eligible news business” in a manner that opened the eligibility door to some organizations that may not even produce news content. As a result, the bill faces another potential trade challenge as it evolves into a straight subsidy model in which the bulk of the payments go from Internet companies to Canadian broadcasters with little regard for value or any notion of actually use of news content.
A Tale of Two Readouts: U.S. Escalates Trade Concerns With Canadian Digital Policy as Canada Seeks To Downplay the Issue
Canadian International Trade Minister Mary Ng and U.S. Trade Representative Katherine Tai met yesterday to discuss Canada-U.S. Trade issues and concerns regarding Canada’s digital policy – most notably a proposed digital sales tax and Bills C-11 and C-18 – continue to mount. The U.S. raised digital policy concern over the summer, specifically citing Bill C-11 with a reference to “pending legislation in the Canadian Parliament that could impact digital streaming services.” The latest readout suggests that the concerns are growing, as the U.S. now cites both Bills C-11 and C-18 by raising “pending legislation in the Canadian Parliament that could impact digital streaming services and online news sharing and discriminate against U.S. businesses.”
Freedom of Expression for a Price: Government Confirms Bill C-18 Requires Platform Payment for User Posts That Include News Quotes and Hyperlinks
The longstanding debate over whether Bill C-18, the Online News Act, requires payment for linking came to an end yesterday. Government officials admitted that even basic quotes from news articles that include a hyperlink to the original source would scope user posts into the law and require platforms such as Google and Facebook to negotiate payment for the links. As noted below, even that position may understate the impact of the bill, which appears to also cover a user post of a news quote without a link. In other words, merely quoting a few sentences from a news article on an Internet platform is treated as making news content available, which triggers a requirement for the platforms to negotiate payment. This position runs counter to Canada’s copyright obligations under the Berne Convention and has no place in a country committed to freedom of expression.
The Law Bytes Podcast, Episode 147: Canada’s Battle over Internet Streamers – A Cancon Story of Freedom of Expression, Algorithms and Cultural Policy
The end for Bill C-11 at the Senate is drawing near as this week, Canadian Heritage Minister Pablo Rodriguez is scheduled to make a long awaited appearance followed by clause-by-clause review of the bill. The Senate hearings have been a model for legislative review. They have heard from a myriad of witness, read countless briefs, and immersed themselves in a hard piece of legislation. Regardless of their views, they know the issues around content regulation in the bill are real. The big remaining questions are whether those hearings result in legislative amendments and, if they do, whether the government will accept them.
While the Senate was continuing its hearings last week, I was delighted to travel to Yale University to deliver a talk on the bill and the controversies it has sparked. This week’s Law Bytes podcast is an audio version of that talk, which traces the development of Canadian broadcast policy as applied to the Internet and recounts how a relatively uncontroversial bill when first introduced sparked a firestorm that is still raging.
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