For months, supporters of Bill C-18, the Online News Act, assured the government that Meta and Google were bluffing when they warned that a bill based on mandated payments for links was unworkable and they would comply with it by removing links to news from their platforms. However, what has been readily apparent for months became reality yesterday: Meta is now actively blocking news links and sharing on its Facebook and Instagram platforms. The announcement does not reference Threads, but it would not surprise if news links are ultimately blocked on that platform as well. The company says that the blocking will take several weeks to fully roll out to all users, suggesting that it has learned from the over-blocking mistakes made in Australia and is proceeding more cautiously in Canada. By the end of the month, the world’s largest social media platform will become a news desert in Canada, with links to all news – both Canadian and foreign – blocked on the platform.
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What If It Isn’t a Bluff?!: The Consequences of the Government’s Epic Bill C-18 Miscalculation Begin to Set In
As Bill C-18 made its way through the legislative process, the government and the media lobby groups supporting the bill insisted that Google and Meta were bluffing when they warned that legislation premised on mandated payments for links could lead the companies to stop Canadian news linking or sharing on their platforms. Proponents would point to the Australian experience or claim that links to Canadian news were simply too valuable for the platforms to walk away. Compromise amendments were ignored in favour of tough talk about not backing down, the platforms were investigated for daring to test link blocking, and MPs and Senators acted as stenographers for media lobby groups by introducing amendments that now leave the government with even less flexibility in the regulatory process.
Over the past week, the reality appears to have begun to seep in.
Trudeau Likens Bill C-18 Battle To World War Two Fight for Democracy as Government Suspends Meta Advertising (But Not Liberal Party Ads)
The government moved to escalate the battle over Bill C-18 yesterday, announcing that it was suspending advertising on Meta’s Facebook and Instagram platforms due the company’s decision to comply with the bill by blocking news sharing and its reluctance to further negotiate the issue. While the ad ban applies to federal government advertising, Liberal party officials confirmed they plan to continue political advertising on the social networks, suggesting that principled opposition ends when there might be a political cost involved. At issue is roughly $11 million in annual advertising by the federal government, a sum that pales in comparison to the Parliamentary Budget Officer’s estimate of at least $100 million in payments in Canada for news links from Meta alone.
Process Failures: What the Raptors Losing Fred VanVleet Teaches About Bill C-18
Evan Scrimshaw, who writes an engaging Substack primarily focused on Canadian politics, posted an interesting piece over the holiday weekend that linked the Toronto Raptors failure to resign guard Fred VanVleet and the reaction to Google and Facebook’s announcement that they plan to block news sharing or links as a result of Bill C-18. Scrimshaw argues that the public commentary on both developments featured similar “I told you so’s”: those that argue the Raptors should have traded VanVleet at the trade deadline rather than risk losing him for nothing and those who now argue that Bill C-18 would invariably lead to Google and Facebook blocking news sharing or links. Scrimshaw makes the case that it is too early to conclude anything with respect to Bill C-18 and that the Internet companies and government are merely engaged in a very public negotiation that could well result in either or both seeking a compromise before the law takes effect.
Media Chaos: How the Government’s Legislative Plans to Support Canadian Media Have Backfired Spectacularly
The Online News Act may be only days removed from having received royal assent, but the government’s plans to support the Canadian media sector have already backfired spectacularly. While it claimed its Bill C-18 would add millions of dollars to the sector and support struggling media companies, the reality has quickly intervened: blocked news sharing on Internet platforms with cancelled deals on the horizon, reports of direct corporate intervention in news departments, massive layoffs and regulatory requests to decrease spending on news, and now a nightmare merger proposal between Postmedia and Torstar. And that is just over the past week. Canadian Heritage Minister Pablo Rodriguez has amply demonstrated that there is no Plan B, offering up the prospect of further dependence on government through more public spending to mitigate the harms from his massive miscalculations. Not all of this is the government’s doing, but having relied on empty assurances that blocked news sharing was merely a bluff, Rodriguez picked politics and tough talk over good policy and is now left with media chaos.
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