The government plans to introduce a motion next week requiring Google and Facebook to turn over years of private third-party communication involving any Canadian regulation. The move represents more than just a remarkable escalation of its battle against the two tech companies for opposing Bill C-18 and considering blocking news sharing or linking in light of demands for hundreds of millions in payments. The motion – to be introduced by the Parliamentary Secretary to the Minister of Canadian Heritage (yes, that guy) – calls for a series of hearings on what it describes as “current and ongoing use of intimidation and subversion tactics to avoid regulation in Canada”. In the context of Bill C-18, those tactics amount to little more than making the business choice that Heritage Minister Pablo Rodriguez made clear was a function of his bill: if you link to content, you fall within the scope of the law and must pay. If you don’t link, you are out of scope.
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The Law Bytes Podcast, Episode 158: In Their Own Words – Ministers, MPs, Senators and Government Officials on Bill C-18
Bill C-18, the Online News Act, has been at the centre of growing firestorm in Canada following reports that Google has begun testing the removal of links to Canadian news services for a small percentage of its users. The issue is headed to the Standing Committee on Canadian Heritage later today with MPs likely to take turns berating Google executives. If you’re just catching up or don’t understand what the fuss is about, this Law Bytes podcast is for you. While the government tries to spin the bill as a big win for media of all sizes without concerns for the Internet, the reality is far different. But you don’t have to take my word for it. This podcast episode features clips of what Ministers, MPs, Senators, and government officials have already said at committee or in the Senate about the bill.
Bill C-18, Google and Mandated Payments for Links: My Appearance on CBC’s Power and Politics
As the Standing Committee on Canadian Heritage summoned Google to appear next week before committee (and implausibly provide all internal documentation related to Bill C-18 by tomorrow), media coverage of the bill and Google’s response has intensified. I was pleased to appear on CBC’s Power and Politics to discuss the the bill, Google’s response, and the implications of mandated payments for links that the government expects could fund 35% of news expenditures in all news outlets in Canada.
Why Justin Trudeau is Wrong About Bill C-18 and Google’s Response to Mandated Payments for Links
“It really surprises me that Google has decided that they would rather prevent Canadians from accessing news than actually paying journalists for the work they do. I think that’s a terrible mistake and I know that Canadians expect journalists to be well paid for the work they do.”
Prime Minister Justin Trudeau waded into Bill C-18 and Google removing links to Canadian news articles in search results as part of a test for a small percentage of users yesterday with the quote cited above. At a press conference in Toronto, Trudeau went out of his way to volunteer that he is surprised by Google’s actions, which he thinks is a “terrible mistake.” If Trudeau was surprised, then he has not been paying attention, as the possibility of removing links to news articles in search results or social media has been an obvious consequence of a bill that mandates payments for links. But his surprise isn’t what is important or requires comment. What does is that Trudeau’s comments mislead on several critical issues with Bill C-18.
The Bill C-18 Reality: Everyone Loses When the Government Mandates Payments for Links
The report that Google is conducting a national test that removes links to Canadian news sites for a small percentage of users sparked a predictable reaction as politicians who were warned that Bill C-18 could lead to this, now want to know how it could happen. None of this week’s developments should come as a surprise. Bill C-18 presents Google and Facebook with a choice: pay hundreds of millions of dollars primarily to Canadian broadcasters for links to news articles or stop linking. Both companies are doing precisely what they said they would do, namely considering stopping linking (Google conducted the same tests in Australia several years ago). Indeed, strip away the hyperbole and the bottom line is this: the costs of Bill C-18 are enormous (the government’s Senate representative suggesting the bill could result in revenues to cover 35% of news expenditures of every news outlet in Canada) and the revenues from news for the platforms are not (Facebook says news only constitutes 3 percent of posts and Google does not even run ads on its Google News product). As some have noted, the government says the companies are stealing content if they link and blocking content if they don’t.
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