Consumer frustration with just about everything associated with Canadian communications services is well known. The list of concerns is long: high prices, contracts that lock in consumers but not providers, gaming prices to make comparison shopping difficult, and confusing consumer codes among them. As politicians have begun to take notice, the CRTC has suddenly become more active with several consultations and new consumer focused initiatives. My colleague Marina Pavlović, a law professor at the University of Ottawa, has been at the forefront of consumer rights law and communications services for many years. She joins the Law Bytes podcast to talk about the ongoing consumer challenges and the latest CRTC developments.
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How the Online Streaming Act Misdiagnosed Canada’s Broadcasting Woes
Nearly one year ago, I made my way from my home in Ottawa across the river to the Gatineau hearing room used by the Canadian Radio-television and Telecommunications Commission (CRTC) to participate in its inaugural proceeding on implementing the Online Streaming Act, better known as Bill C-11. I had regularly appeared as a witness at House of Commons and Senate committees, but this was my first time participating in a hearing before Canada’s broadcasting regulator. I came with a simple message: while the roster of witnesses was filled with cultural lobby groups and broadcasters asking for their share of the bill’s anticipated pot of gold, the perspective of consumers and the public interest needed to be heard.
My opening statement emphasized prioritizing public over private interests, which, I argued, meant putting Canadians at the centre of their communications system, as one CRTC chair once characterized it. I did not anticipate receiving a warm reception, but I was still taken aback by the frostiness toward the notion that consumers and the public interest were important considerations. Instead, commissioners pointed to the need to step in where broadcasters or content creators were struggling to succeed in the market.
CRTC Approves Google’s $100 Million Online News Act Exemption Deal
The government’s deeply flawed attempt to force tech platforms to pay Canadian news outlets for linking to news is nearing its payout. The CRTC this week formally exempted Google from negotiating individual agreements and facing a potential mandated arbitration system in return for a lump sum $100 million annual payment. The $100 million deal was the government’s last ditch attempt to salvage the Online News Act as its insistence that tech platforms would never walk away from news proved to be disastrously wrong. Within weeks of the former Bill C-18 receiving royal assent in June 2023, Meta blocked news links on its Facebook and Instagram platforms. The block has remained in place for more than a year, causing significant harm to news outlets and sparking a CRTC investigation into whether user attempts to evade the block bring the company within the scope of the law.
Is Meta Offside the Online News Act? The CRTC Wants to Know.
Meta has blocked news links on its Facebook and Instagram platforms for more than a year in response to the Online News Act, resulting in significant lost traffic to many Canadian news sites. The company’s position has been pretty clear from the start: the law applies to digital news intermediaries that make “news content produced by news outlets available to persons in Canada.” By blocking news links, the company believes that it falls outside the definition and therefore is not required to register with the CRTC and enter into negotiations for payments to Canadian news outlets. After Canadian Heritage Minister Pascale St-Onge repeatedly urged the CRTC to examine the issue, this week the Commission sent a letter to Meta giving it seven days to comment on “what measures Meta is taking to comply with the Act, and whether news is being made available on Meta’s platforms.”
The Bill on Canada’s Digital Policy Comes Due: Blocked News Links, Cancelled Sponsorship, Legal Challenges, and Digital Ad Surcharges
Canada’s digital policy has seemingly long proceeded on the assumption that tech companies would draw from an unlimited budget to write bigger cheques to meet government regulation establishing new mandated payments. Despite repeated warnings on Bills C-11 (Internet streaming), C-18 (online news), and a new digital services tax that tech companies – like anyone else – were more likely to respond by adjusting their Canadian budgets or simply passing along new costs to consumers, the government and the bill’s supporters repeatedly dismissed the risks that the plans could backfire. Yet today the bill from those digital policy choices is coming due: legal and trade challenges, blocked news links amid decreasing trust in the media, cancellation of sponsorship deals worth millions of dollars that will be devastating to creators, and a new Google digital advertising surcharge that kicks in next week to offset the costs of the digital services tax.
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