Commentary
Canada appears to be struggling with understanding and regulating the internet.
This observation is supported by the challenges faced by the Online News Act, the Online Streaming Act, and the Digital Services Tax, all of which have received negative reactions.
This month marks one year since Meta decided to stop allowing the sharing of news links in Canada, in response to the Online News Act. Meta made this decision to avoid paying substantial sums to news companies and to avoid potential replication of the Canadian law by other governments. As a result, Meta estimated a loss of $230 million annually in traffic referral value to publishers.
Initially, there was concern about accessing information during emergencies, such as the wildfires in Yellowknife in August 2023. However, it became apparent that the internet, including platforms like Facebook, could still provide necessary information without users having to visit news websites. This shift in perspective was evident during the evacuation of Jasper this summer, as politicians did not raise concerns about the absence of news links on Facebook.
Despite Meta’s actions, the Canadian government continues to pursue the Online News Act. Heritage Minister Pascale St-Onge believes that Meta may still be required to compensate news sources. This belief is based on the notion that some users are bypassing Meta’s link ban by sharing screenshots of news articles, which violates Meta’s user policies.
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Sharing frame grabs of news articles is not equivalent to sharing links and does not directly facilitate access to news websites. This user-generated content is not under the jurisdiction of the CRTC, as instructed by Ms. St-Onge, particularly in the context of the Online Streaming Act. The CRTC has acknowledged this policy discrepancy, stating that they would need further evidence to take action against Meta.
The implementation of the Digital Services Tax (DST) has also faced challenges. While there is agreement that tech giants should pay taxes in the countries they operate, Canada’s unilateral decision to impose a 3 percent DST has led to repercussions. Google, for example, plans to recover part of the DST cost by imposing a 2.5 percent fee on its advertisers, potentially leading to price increases for consumers.
The potential for trade sanctions from the United States in response to the DST could further impact the Canadian economy. Despite these risks, Canada seems willing to take chances, as seen in its handling of the Online News Act and the Online Streaming Act.
Given the past outcomes, the odds are not in favor of Canada’s approach to internet regulation.
Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.
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