Quotulatiousness

December 16, 2022

The Online News [Shakedown] Act passes the House of Commons

Filed under: Business, Cancon, Government, Media — Tags: , , , , , , , , — Nicholas @ 03:00

Michael Geist summarizes the farcical progress of Justin Trudeau’s legalized theft from the “tech giants”:

Later today, the House of Commons will vote to approve Bill C-18, the Online News Act, sending it to the Senate just prior to breaking for the holidays. While Canadian Heritage Minister Pablo Rodriguez and media lobbyists will no doubt celebrate the milestone, it should not go unremarked that the legislative process for this bill has been an utter embarrassment with an already bad bill made far worse. The government cut off debate at second reading, actively excluded dozens of potential witnesses, expanded the bill to hundreds of broadcasters that may not even produce news, denigrated online news services as “not real news”, and shrugged off violations of international copyright law. All the while, it acknowledged that mandated payments for links are the foundation of the bill with officials stating that individual Facebook posts accompanied by a link to a news story would be caught by the law. As for the purported financial benefits, the government’s own estimates are less than half those of the Parliamentary Budget Officer, who also concluded that more than 75% of the revenues will go to broadcasters such as Bell, Rogers, and the CBC. The end result is a bill that will undermine competition and pose a threat to freedom of expression, while potentially leading Facebook to block news sharing in Canada and Google to cancel dozens of existing agreements with Canadian news outlets.

As I’ve chronicled for months, Bill C-18 is the product of an intense lobbying campaign from some of Canada’s largest media companies. While the Globe and Mail broke from the pack at the last minute, years of one-sided editorials — even devoting full front pages to the issue — had its effect. Indeed, Canadian newspapers would be exhibit #1 for how government intervention in the media space has a direct impact on an independent press. From the moment of its introduction, the consequences were immediately obvious as payments for links serves as the foundation for a law that treats “facilitating access to news” as compensable. Canadians can be forgiven for thinking the bill is about compensating for reproduction of news stories. It is not, since the platforms don’t do that. Instead, it is about requiring payments for links, indexing or otherwise directing traffic to the news organizations who are often the source of the link itself. In most circumstances, recipients pay for the benefits that come from referral traffic. With Bill C-18, the entities providing the referrals pay for doing so.

Further, the bill is about far more than struggling Canadian newspapers as it expands eligibility into broadcasters such as the CBC, foreign news outlets such as the New York Times, and hundreds of broadcasters licensed by the CRTC that are not even required to produce news. The end goal is negotiated payments for links, backed by the threat of a one-sided arbitration process overseen by the CRTC in which the arbitration panel can simply reject offers if it believes it fails to meet the government’s policy objectives. That isn’t a commercial deal, it is a shakedown.

I’ve been operating on the assumption that the government is betting that the big internet companies won’t do the obvious and ban linking to any Canadian media outlet on their respective platforms, but the feds don’t have a great track record of predictions in recent years …

In a later post, Michael Geist illustrated the literal misinformation that was pushed by government MPs during Bill C-18’s path through to final reading by quoting some of Liberal MP Lisa Hepfner’s contributions:

Last month, Liberal MP Lisa Hepfner shocked Canadian online news outlets by stating that “they’re not news. They’re not gathering news. They’re publishing opinion only.” The comments sparked instant criticism from news outlets across the country, leading Hepfner to issue a quick apology. In the aftermath of the comments, Hepfner said nothing for weeks at Heritage committee studying Bill C-18. That bill passed third reading yesterday – I posted on the embarrassing legislative review – and Hepfner was back at it. Rather than criticizing online news outlets, this time she targeted the Internet platforms, saying the bill would make it “harder for big digital platforms like Facebook and Google to steal local journalists’ articles and repost them without credit.” 

[…]

Hepfner’s comment not only provide a troubling example of an MP engaging in misinformation about links who has effectively labelled her own Facebook posts as theft, but strikes at the heart of the problem with Bill C-18. As government officials have acknowledged, the entire foundation of the bill is based on paying for links. In fact, when a proposal to remove links from the bill was raised at committee, government MPs described the change as a loophole and voted against it. In the case of the CBC links, the government confirmed that Hepfner could write about the availability of children’s medications (ie. “Great news! CBC reports a million bottles of pain medication are on the way”) but once she added a link to provide a source for the claim, Bill C-18 is triggered.

These examples highlight the absurdity of a law that treats links as compensable and MPs who equate those links to theft. To be clear, there is nothing wrong with Hepfner or anyone else providing a link to a story on greater availability of children’s medicine. In fact, the CBC story has effectively already been paid for by the public and should be shared widely without the government creating barriers to sharing that information. What is wrong that is ill-informed MPs have voted for Bill C-18, creating a framework in which the government is imposing a mandatory payment scheme for some platforms for hosting links. The bill is now headed to the Senate which will hopefully make the necessary amendments to set Hepfner’s mind at ease that her own Facebook posts do not make her an accomplice to theft.

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