The Federal Court has approved a consent order requiring Environment and Climate Change Minister Steven Guilbeault to unblock Rebel News publisher Ezra Levant on Twitter. The order stems from a 2021 lawsuit filed by Levant which argued that blocking “violated the Applicants’ constitutional rights under section 2(b) of the Canadian Charter of Rights and Freedoms in blocking access to official governmental Twitter accounts, and thereby limiting the Applicants’ ability to, inter alia, access and communicate important information, participate in public debate, and express views on matters of public concern.” The order also includes a $20,000 cost award to Levant. Regardless of your views of either Levant or Guilbeault, the principle that government ministers should not block access to their feeds given the implications for freedom of expression is an important one.
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It’s Complicated: Unpacking the Risks Behind Canada’s Digital Services Tax Plan
The Canadian government released a detailed document last week outlining the specifics behind its draft Digital Services Tax Act. No actual legislation has yet been passed, but the government is providing guidance on how the potential law would be interpreted assuming it takes effect next year. The document has sparked criticism from business groups and the U.S. government given that it envisions a retroactive three percent tax that will hit a wide range of businesses. Further, the Canadian plan is facing significant opposition from many OECD countries since it may jeopardize a global agreement that is designed to address the digital services tax issue. While the digital services tax (DST) is typically framed as a tax on big tech, the reality is that the Canadian version extends far beyond just companies such as Google and Facebook, potentially including major Canadian retailers such as Canadian Tire, Loblaws, and others.
My view is that unlike Bills C-11 and C-18, which create cross-industry subsidy models funded by tech companies to support government policy, appropriate taxation models is the far better approach to ensure that companies “pay their fair share”. While a DST may be a good approach (particularly if part of a global system), the Canadian plan to implement the tax retroactively next year creates some significant risks. In fact, our current approach raises the prospect of U.S. tariff retaliation, opposition from many allies at the OECD, and expanded news link blocking in response to Bill C-18.
Same as It Ever Was: Cabinet Overhaul Signals Government Doubling Down on Digital Policy Mess
It should not come as a surprise, but those hoping that the government’s much-anticipated cabinet overhaul might signal a potential course-correction on its digital policy mess will be sorely disappointed. If anything, yesterday’s changes at Canadian Heritage and Justice suggest an acceleration of plans that will include continuing to head toward the Bill C-18 cliff of blocked news links as well as introducing controversial online harms legislation and perhaps even copyright reform. Pascale St-Onge, the new Heritage Minister, was a lobbyist in the culture sector before her election to the House of Commons and is likely to welcome the big tech battle, while removing David Lametti as Justice Minister and replacing him with Arif Virani means online harms loses an important voice for freedom of expression in favour of someone who has expressed impatience with delays in new regulations.
The Law Bytes Podcast, Episode 171: What Just Happened? – A Half-Year Report on Canadian Digital Policy
With Parliament set to break this week for the summer, this week’s Law Bytes podcast provides a half-year report on what happened over the past six months. At the start of the year, I focused on five issues in 2023 preview: the role of Canadian Heritage, the increasing tensions over digital policy, the emergence of private members bills, wireless policy disputes, as well as privacy and AI regulation. The episode revisits these issues with an examination of how Bills C-11 and C-18 were pushed through the legislative process, the battles over wireless regulation in light of the Rogers-Shaw merger, and the failure to advance privacy and AI regulation.