Hours after the Canadian men’s soccer team officially qualified for the World Cup last month, Canadian Heritage Minister Pablo Rodriguez took to Facebook to celebrate the win. The Rodriguez post included a link to a La Presse article on the game (the same link I’ve just posted). Visitors that click on the link are taken to the newspaper’s website, shown a series of ads, offered some encouragement to subscribe, and presented with a series of widgets they can use to also post the link to Facebook, Twitter or LinkedIn. While there is nothing unusual about that in today’s media economy, yesterday Rodriguez introduced a bill that would fundamentally alter the activity. According to Rodriguez, Facebook should pay La Presse for the link that he posted and his Bill C-18, the Online News Act, would create a mandatory arbitration system overseen by the CRTC to ensure that they do.
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Here Comes the Online News Act: Why the Government’s Media Shakedown is Bad News For Press Independence and Competition
Canadian Heritage Minister Pablo Rodriguez is expected to introduce the Online News Act (technically An Act respecting online communications platforms that make news content available to persons in Canada), his response to a massive lobbying campaign from Canadian media organizations today. Bill C-18 will hand new power to the CRTC to oversee what are effectively mandatory payments by Internet platforms such as Google and Facebook for the mere appearance of news on their platforms. This represents nothing less than a government-backed shakedown that runs the risk of undermining press independence, increasing reliance on big tech, and hurting competition and investment in Canadian media. I will have several posts in the coming days including an analysis of the bill once it drops and a review of the lobbying campaign for the bill, which included over 100 registered lobbyist meetings by News Media Canada over the past three years and skewed coverage of the issue in which the overwhelming majority of news stories backed government intervention.
Why Has the Government’s Defence of Bill C-11 Been So Cartoonishly Misleading?
Bill C-11, the Online Streaming Act that serves as the government’s follow-up to Bill C-10, was the subject of debate in the House of Commons yesterday as the legislation slowly makes it way through the legislative process. There are still committee hearings to come, but it is readily apparent that many of the concerns that hamstrung Bill C-10 have returned: virtually limitless jurisdictional, overbroad scope, and harmful discoverability provisions. Further, this bill has attracted mounting criticism from Canadian digital-first creators, who note that one of Canada’s biggest cultural exports could be hurt by the bill leading to millions in lost revenues.
While none of these concerns should come as a surprise, what is surprising is how ill-prepared the government appears to be address the criticisms. Indeed, the communications strategy seems based primarily on presuming that Canadians won’t bother to read the legislation and will therefore take misleading assurances at face value. Consider the latest attempt to assuage concerns: a cartoon of Canadian Heritage Minister Pablo Rodriguez providing an assurance that the bill’s changes won’t affect individual Canadians since “the changes only apply to companies.” That cartoon sparked an instant mashup that pointed to the direct effects on digital first creators. Further, the changes don’t apply only to companies. Bill C-11 treats all audio-visual content as programs subject to potential regulation. With exceptions that could easily capture TikTok or YouTube videos, the bill is about far more than just large companies.
Bill C-11’s Foundational Faults, Part Four: Why the Discoverability Rules Will Harm Canadian Creators and Risk Millions in Revenues
My post on why Bill C-11’s discoverability rules are a flawed solution in search of a problem demonstrated that there is little incentive for Internet platforms to make it difficult for Canadians to find Canadian content. Indeed, experience with both Netflix and Youtube suggest that there is every reason to ensure the availability of such content and to recommend it where users show an interest. Yet proponents of discoverability regulations may still argue that even if they are unlikely to accomplish much, what is the harm in trying? The simple answer is that the regulated discoverability requirements are likely to harm Canadian creators, resulting in lost audiences and potentially millions in lost revenues.
Lobby Harder: Canadian Heritage Minister Pablo Rodriguez Issues Industry Call to Action to Support Bill C-11
Canadian Heritage Minister Pablo Rodriguez appeared at the CMPA’s Prime Time conference last week, calling on the film, TV and broadcast sectors to become even more vocal in defending his Bill C-11. The bill, which has been the top lobbying priority of the sector for years, opens the door to regulating user generated content and asserts jurisdiction over all audio-visual services worldwide. There are several elements worth noting in the question-and-answer session with Rodriguez, not the least of which is the insistence on inaccurately claiming the new bill addresses concerns with regulating user generated content. When asked about the issue, Rodriguez responded: