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.
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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.
Mandated Payment for Links To Cover 35% of News Expenditures?: Google Responds to Bill C-18 By Testing Blocking Links to News Content
The battle between Canadian Heritage Minister Pablo Rodriguez and Internet giants Google and Facebook continues to head toward a seeming inevitable collision in which the government repeatedly says it will not be intimidated even as the two Internet companies block or reduce access to news content on their platforms in Canada. Reports last night indicate that Google is now testing blocking news links for a small percentage of Canadian users, with the company saying it needs to assess potential responses to Bill C-18. This follows earlier Facebook comments indicating that it would consider blocking news sharing on its platform if the bill is enacted in its current form.
Survey Says: Why the Government Reacted With Alarm to a Critical Opinion Poll on the Online News Act
On the very first day of the Standing Committee on Canadian Heritage’s hearings on the Online News Act last month, News Media Canada, the lead lobbyist for Bill C-18, was asked about a poll it commissioned this year which found 79% support requiring Google and Facebook to share revenue with Canadian news outlets. When Bloc MP Martin Champoux asked whether respondents were well informed, President and CEO Paul Deegen assured him “they were very well informed”. Deegan had a different response yesterday to another poll – this one commissioned by Google – as he took issue with the poll and warned that Google must provide “an honest presentation of the facts.” I have never thought any of these corporate-commissioned polls were of significant value and I’m not going to start now, whether it is News Media Canada or Google that is doing the commissioning. However, I think what makes the Google poll notable is the response to it, rather than the actual data.
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