Munk Dialogue with Michael Geist: Why the Online News Act is a policy disaster
Dec 19, 2023
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The Online News Act in Canada requires Google and Meta to pay Canadian news outlets for social media links. Michael Geist criticizes the legislation, arguing it will result in news organizations relying on government subsidies and becoming less objective. The podcast discusses the merits and demerits of the legislation, challenges of digital regulation, lessons from tech regulation, and the future of news.
The Canadian government's Online News Act may lead to news organizations becoming more reliant on government subsidies and less objective in their reporting.
The legislation's approach to making tech companies pay for news content overlooked user preferences and failed to prioritize competition and privacy issues.
Deep dives
The Impact of Government Subsidies on News Organizations
The Canadian government introduced controversial legislation (Bill C.A.T.) requiring Google and Meta (Facebook and Instagram's parent company) to pay Canadian news outlets for linking their content on social media sites. Meta responded by blocking Canadian news content, while Google agreed to pay $100 million annually to be exempted from the act. Critics, including Michael Geist, argue that news organizations have entered into a Faustian bargain with the government, potentially leading to increased reliance on government subsidies and damaging their credibility. The legislation also raises questions about fair coverage during elections and the potential hindrance of innovation by benefitting incumbents.
Challenges in Defining Qualified Canadian Journalism Organizations
The Canadian government faces difficulties in determining what qualifies as a journalism organization under the legislation. The regulations exclude certain industry-specific news products but fail to address how to adjudicate eligibility for entities that self-declare as journalists or news organizations. The process of defining criteria for qualified Canadian journalism organizations raises concerns about the potential dilution of the subsidy as more entities compete for limited available funding. The expanded definition of journalists also includes staff involved in producing news content, expanding the complexities of eligibility.
Unintended Consequences and Flawed Assumptions
The legislation's approach to making tech companies pay for news content was flawed, as it failed to properly consider business models and user preferences. The assumption that social media companies would be motivated to pay for news links disregarded the fact that news content is often less desired by users compared to other forms of content. The legislation also failed to prioritize competition and privacy issues, with some proposals ignoring lessons learned from other jurisdictions. The politicization of the legislation hindered constructive criticism and resulted in missed opportunities for better policy outcomes.
Lessons for Future Digital Regulation
Despite the challenges faced with current legislation, the need for smart regulation of digital companies remains. Key lessons include prioritizing well-thought-out and good legislation, studying examples from other jurisdictions, and avoiding politicization of the policy-making process. Constructive criticism should be welcomed to improve policy outcomes. Clear objectives, such as focusing on competition and privacy, are essential to avoid unintended consequences and ensure effective regulation. Future regulation related to online safety, AI, privacy, and copyright should aim for depoliticization and space for constructive dialogue.
Amid years of decline in news ad revenue and a rapidly changing media landscape, the Canadian government introduced Bill C-18, the Online News Act. This controversial piece of legislation requires Google and Meta - the company behind Facebook and Instagram – to pay Canadian news outlets for linking their content to these social media sites. Meta responded by blocking all Canadian news content from Facebook and Instagram, while Google has recently agreed to pay $100 million to Canadian publishers, indexed for inflation.
Our guest on this Munk Dialogue is Michael Geist, one of the legislation’s fiercest critics. Michael is an expert in Canadian technology law and the Canada Research Chair in Internet and E-Commerce Law at the University of Ottawa, and argues that far from helping Canadian news outlets, media organizations – unable to drive users from social media – will not only suffer from a loss of revenue, but they will become more reliant on government subsidies to stay afloat and thus become less objective in their reporting.
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Senior Producer: Ricki Gurwitz
Editor: Kieran Lynch
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