The lady is not for turning: Julie Miville-Dechêne’s campaign for kids and porn regulation

August 16, 2025

Senatrice Julie Miville-Dechêne does not give up easily.

The senator appointed by Justin Trudeau in 2018 is now engaged in her third try to get the pornography-regulating Bill S-209 passed through Parliament before it gets killed off by another election call. Her previous bills died that way: S-203 by the 2021 election and S-210 by the 2025 election. Both times, her Bill passed the Senate but got a frosty reception from the governing Liberals.

Described in MediaPolicy’s post earlier this week, Bill S-209 would introduce age verification technology to force pornography websites to screen out children under 18 years of age so that impressionable kids don’t view, and internalize, violent sexual behaviour. Adult access to pornography remains uncontested.

The issue of children viewing porn is definitely down her feminist alley as the former head of Québec’s Council on the Status of Women, but the Senator works hard and champions many underdog and progressive causes.

In 2022 she and fellow Senator Paula Simons fought relentlessly (but ultimately not successfully) to carve out Canadian YouTubers from the scope of the Online Streaming Act. In vindication, the CRTC later agreed with them and exempted YouTube videos from broadcasting regulation for the foreseeable future.

In 2023 Miville-Dechêne initiated legislation in the Senate that requires Canadian governments and large companies to report on their global supply chains so that the federal government can enforce prohibitions against imports of goods manufactured by forced and child labour. The Liberals played ball on that one and it was sponsored in the House by Toronto MP John McKay and it passed with broad support.

Her pornography bill has already stirred the Kraken of a regulation-free Internet, so if S-209 does make it to a House of Commons Committee in the next few months, expect some debate, especially about age verification technology that could also be used to stop children from opening social media accounts, were the federal government to consider legislating that.

MediaPolicy asked Miville-Dechêne about the long and uncompleted journey of “An Act to restrict young persons’ online access to pornographic material.”

***

Media Policy: It’s a little unusual for a bill to have the support of the Senate and the opposition parties, but not the government. What can you say about any discussions you have had with the Justice Minister?

Julie Miville-Dechêne: Not much, I had a confidential discussion very late in the game [in 2024] with [former] minister Virani. But let me say that in general, my conversations with Liberals were mind boggling. 

I don’t think they knew what pornographic sites have become, hardcore and violent, so our conversation was difficult. It’s not ‘70s era erotica, a form of sexual liberation. They brought up the importance for young people searching for their identity or sexual orientation to have free access to porn sites, as if seeing violent stuff was the path to sexual identity. 

There’s a whole generation at risk, we need to get something done. Studies show a correlation between viewing and harm. Kids think this is what sex is all about. The British Commissioner for children did surveys and found that 47% of youth aged 16 to 21 stated that girls expect sex to involve choking.

MP: So the former Prime Minister didn’t see it that way?

JMD: In talking to media in 2024 he called S-210 a Conservative Bill which would do shady things with personal data. It was easier I suppose than to state that the sponsor was a feminist, an independent senator. The Trudeau government never proposed any improvement to the Bill as they do with private member bills that they like. On the other hand, there was support for the Bill from all the other political parties, not just the Conservatives, but the Bloc and the NDP as well.

MP: What was it about the government’s own online harms Bill C-63 that you thought did not adequately address underage access to hardcore porn?

JMD: I was very disappointed. Nowhere in their Bill did it say that, to minimize harms to minors, age verification or age estimation is expected. Nowhere. There was only an indication that digital operators must adopt “age-appropriate design” for their services. That’s not specific enough. In the UK’s Online Safety Act, social media platforms and large search engines must also prevent children from accessing pornography and material that promotes or encourages suicide, self-harm and eating disorders. This has to be kept off children’s feeds entirely. By comparison, the Liberal Bill C-63 was vague and weak. 

MP: An important practical consideration for your bill seems to be the effectiveness of age verification and estimation technology. The most recent technology doesn’t require personal information or facial recognition but claims to be able to use videos of human hand movements. Privacy lawyer David Fraser dismisses age estimation as “magic fairy dust technology.” What is the current state of the age verification/estimation technology as you understand it?

JMD: It’s obviously improving fast. I did rely on the expert on privacy matters, Privacy Commissioner Phillipe Dufresne. Because I introduced two similar bills on age verification since 2020, M. Dufresne took it upon himself to research the matter and speak with his counterparts in other countries. He testified on my Bill before the House of Commons Committee and proposed stronger safeguards

I took his advice and I rewrote section 12 of the new Bill S-209 where Parliament instructs the government on what standards it should enforce for age verification technology. The bill says that government can only approve a verification method that is “highly effective,” operated by a third party and not the pornographers themselves, collects solely personal information strictly necessary for age estimation purposes, and requires the destruction of the data once age verification is completed.

We are not re-inventing the wheel here.  Germany has been verifying age for a decade on national porn sites and it’s working fine. Around twenty US states are doing age verification. Also, age verification is already happening in Canada when gambling, buying alcohol or cannabis over the Internet. 

Age assurance technology is getting better. I have added age estimation to age verification in the bill because facial age estimation is now more precise, two years plus or minus, and there are also other emerging technologies like estimation of age through hand scanning which is said to be 98% accurate. No identity card is needed. 

As you know, the UK started age verification and age estimation on July 25th of this year and are engaged in five million new age checks. Opponents are claiming it is a disaster because a few sites were blocked without reasons. I would argue that tech platforms are the ones who have to adjust themselves to block only what is in the law. Some might say they are acting upon an interest in the law not working.

MP: Let’s say the technology is not here yet but reasonably close to happening, does this mean the government might not implement this law until cabinet is satisfied with the technology?

JMD: I would say at this point it is more a question of transparency than technology, in the sense that the public should know what government will ask age verifiers to do in terms of privacy before authorizing them to check the age of Canadians. Right now, the bill says it must be implemented in a year after Royal Assent, but I expect that will be discussed in the House review of the Bill.

But Europe and countries like France, Spain and the UK are already in the process of implementing age assurance, why should we be the only country to think the technology is not ready? I think this debate should be put in the context of protecting children as soon as possible, because harm is being done now. 

In Canada, on this issue I have support from feminists, Christian groups and worried parents. It goes beyond left-right I think.

MP: Seems so. A Leger poll conducted last year says that public support for your bill is high. But that support might change if administrative overreach ends up including something as mainstream as hot sex scenes on Netflix or HBO. Is the definition of pornography in the bill —“dominant characteristic,” “sexual purpose”— too broad? 

JMD: I don’t think it’s that broad. Depiction for a sexual purpose of a person’s genital organs or anal region and breasts must be the dominant characteristic of the film or video. It’s the same elsewhere. In the UK, pornographic material is defined as ‘primarily intended for sexual arousal’. But for movies or series on Netflix, we also have the “legitimate purpose” exemption in section 7 (2) which states that no offense will occur if there is a legitimate purpose related to arts, education, science, or medicine. Movies and television series are generally considered a form of art. 

MP: Okay, but I was just watching an HBO show —I would definitely not consider it pornographic in any way—that had a teen aged sex scene, body parts under clothes, and they acted out a spin-the-bottle sex game where the girl choked the boy as he masturbated. Is that “pornography” or is it exempted as “artistic” erotica?

JMD: I don’t think a single scene meets the test of ‘dominant characteristic.’An expert scholar Janine Benedet wrote a brief to the House committee hearing on S-210 that stated: The scaremongering that accompanies any attempt to define pornography in legislation is depressingly familiar. I have over the years heard predictions that any legal interventions in this area would result in the “banning” of works such as Lolita, American Psycho, Fifty Shades of Grey, and now Game of Thrones.

MP: The US Supreme Court just ruled 6-3 in favour of a Texas age verification law not unlike S-209. Even the dissent was limited to the “level of constitutional scrutiny,” meaning how much of an intrusion on free expression or privacy is too much. If that means age verification laws take hold in the US, one will think that it will here too?

JMD: It’s interesting question, because historically, the American courts have upheld the 1st Amendment of their Constitution, the freedom of expression, more strongly than in Canada.  

So, the latest decision, last June was an important one: the Texas government had a legitimate interest in preventing minors’ access to porn and the law is appropriately tailored because it permits age verification of users through established methods.

Opponents of age verification will point to the fact that the US Supreme Court is now controlled by a majority of conservatives. True, but in first instance, it was a conservative trial judge who blocked the Texas Law, and in appeal court, the conservative justices were divided for and against age verification. So, it is an oversimplification to say that this is only a conservative issue. 

MP: I believe US Supreme Court Justice Alito observed that 15-year-olds are far more tech savvy than their parents?

JMD: He’s right on this. So, you can imagine I was flabbergasted to hear technology expert Michael Geist in a Senate committee stating the responsibility of protecting children from porn with parental controls is solely with parents, like him, not with public authorities.  Professor Geist statedI believed then and believe now that addressing the issue is my responsibility, which includes education, frank conversations and an assessment of whether to use internal blocking tools or filters.

Obviously, not all parents are as knowledgeable as Professor Geist, and this is why the State has long imposed age verification in stores selling alcohol and cigarettes.

MP: Many US states and the UK are looking at age verification for viewing all social media content, not just pornography. What’s your view of that issue?

JMD: There are pressure and policy being brought forward in Australia and France to restrict social media for children and permit only teenagers of a certain age. So yes, it is a trend, not only pushed by the conservatives. I’m still reflecting on the issue. I find it is more complicated than age verification to limit exposure to porn because social media is also a form of socialization for kids. But addiction to social media exists, harm exists, so it is not an easy proposal. A Québec commission recently recommended restricting social media to 14 years and over. 

MP: David Fraser is on YouTube describing you personally as “oblivious” to freedom of expression concerns and that supporters of your legislation are “finger waggers and pearl clutchers.” What’s your view of the freedom of expression and privacy interests raised by this kind of regulation?

JMD: I’m not a puritan if this is what he means, far from it. I’m a feminist and I was a public proponent of strong sexual education when I was head of Quebec’s Council on the Status of Women.

I’m a strong believer in freedom of expression. I was a journalist for 25 years, and then the ombud for news and current affairs at Radio Canada, so I have reflected and written on these questions. I don’t believe an age verification for porn sites which takes seconds unduly limits the freedom of expression of adults. It’s a very limited restriction. Adults can still access the sites. Asking an adult to identify themselves in a sex shop has never been seen as a limit to his freedom of expression. I also think no right is absolute. Here, we have to balance the inconvenience of proving you are an adult with protecting all children from harm. 

***

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This blog post is copyrighted by Howard Law, all rights reserved. 2025.

Catching up on MediaPolicy – TIFF disinvites another documentary – Big Tech gears up for making trade war on Canada

Reuters photo, Kibbutz Berri, October 7, 2023

August 14, 2025

The Toronto International Film Festival may impale itself on yet another disinvitation, this year it’s the documentary “The Road Between Us: the Ultimate Rescue.”

The documentary is directed by a Canadian, Barry Avrich and tells the dramatic story of retired Israeli general Noam Tibon driving his car straight into the Hamas killing fields on October 7, 2023 to save his family under siege by Hamas terrorists in their safe room in kibbutz Berri. CBS 60 Minutes did a television segment on this in 2023.

According to news reports, TIFF claims there are outstanding copyright liabilities that the documentary producers failed to clear regarding livestream video of the Hamas assault. TIFF also told the documentary’s producers that it was concerned about anti-Israeli protesters disrupting TIFF (though it now denies this was the reason for the disinvitation).

TIFF encountered the same controversy last year by cancelling Russians At War, a documentary focussing on Russian soldiers participating in the invasion of Ukraine. The Ontario provincial educational broadcaster TVO then followed suit and cancelled its own distribution of the documentary. 

***

The National Post published a report suggesting US Congress is egging on the White House for trade war with Canada over Bill C-11, the Online Streaming Act. The story was based on the Post‘s access to an unpublished letter sent to the White House from 18 of the 26 Republicans on the Ways and Means Committee.

Intermittent Congressional statements demanding trade action are a well established feature of the Big Tech/Hollywood campaigns to roll back Canadian media regulation of all kinds.

The Post story quotes Republican allegations that our CRTC is unfairly favouring Canadian broadcasters and discriminating against American and other foreign streamers.

I’m not going to dive deep into that complex issue here: it’s complex because the CRTC’s assessment of contributions to support Canadian content is always an apples and oranges exercise.

Differently situated Canadian and foreign media companies contribute in different ways either by paying in cash –to Canadian media funds that offer subsidies to creators of Canadian video and audio content– or in kind, by making available and promoting Canadian content on their own platforms.

It’s fair to say that the CRTC provided the Americans with a bullseye target by exempting Bell’s streaming platform Crave from the same cash contributions as the Californian streamers, but that’s a small part of the overall picture and Bell sponsors far more Canadian programming on Crave than Netflix, Disney+, Paramount+, AppleTV and Amazon Prime combined.

In any event, the CRTC is in the midst of assessing the cash and kind contributions of foreign streamers and so the Congressional objections are premature.

But clearly the Congressional report is an early volley in the coming trade confrontation with the US over the renewal of the CUSMA trade deal, including Canadian culture.

***

Reuters has published a story based on a confidential cables from the US State Department instructing US diplomats in Europe to the rattle cages of national governments over European regulation of Big Tech.

The disgruntlement is both US tech opposition to EU’s measures taken against online harms and misinformation as well as the alleged stifling of the MAGA political narrative in mainstream media.

The MAGA-tech strategic alliance fits comfortably with trade confrontation in which the US claims to be the aggrieved party, perhaps a signal that the recent tariff armistice between the US and the EU is temporary.

***

On the topic of Big Tech’s political action in foreign countries, I note that the US Chamber of Progress (ah, the branding!) is setting foot in Canada by hiring a Canadian policy director.

The Chamber styles itself as a liberal Democrat inspired coalition of Big Tech partners, such as Apple, Amazon and Google.

The tech titans already lobby the federal government and make representations to the CRTC both individually and through the Washington-based CICA and Digital Media Association. So presumably the Chamber of Progress is coming here to do something a little different. The organization has been accused in the past of “astroturfing” for corporate campaigns. Or perhaps the Chamber is seen as a better lobbying fit for a Carney government.

In any event, we already have an authentically Canadian campaign organization that does similar work in pushing back on regulation of the Internet —-Open Media—- with very little money from Big Tech. 

***

Here are two recommendations, one joyful the other not.

Ezra Klein has an insightful podcast on “when is it genocide?” featuring legal expert Philippe Sands. Be prepared to invest a lot of time (almost two hours!) and at the end you may still feel that the arguments are incompletely litigated. But I think you will be better educated (I was) about the history of the UN Convention on Genocide, the legalities, and their application to Gaza.

The other is a repeat recommendation of my favourite show, Crave’s Empathie, thanks to the announcement that a second season of the funny-sad drama set in a Montreal mental health centre has been green lit. 

***

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I can be reached by e-mail at howard.law@bell.net.

This blog post is copyrighted by Howard Law, all rights reserved. 2025.

“The most dangerous (or not) Internet bill you never heard of.” Bill S-209 is ready for Parliamentary prime time

August 12, 2025

There’s a media bill coming to the House of Commons this fall that will create a stir.

It’s called “An Act to enact the Protection of Minors in the Digital Age Act and to amend the Criminal Code,” Bill S-209. (“S” because it originated in the Senate).

It isn’t another child porn law (that’s already illegal). Rather it’s legislation that bans children (under 18) from viewing online porn and makes it a crime for porn websites to permit it, enforced by requiring the pornographers to subscribe to a commercial age verification service for all site visitors.

What follows is a cheat sheet describing the bill and some context. 

The point of the bill, according to its sponsor Senator Julie Miville-Dechêne, is to stop the serious harm to impressionable kids and teens resulting from exposure to hardcore porn, particularly the violence and aggression that has become widely available even on free sites. The dangerous stuff —hitting, slapping, choking— normalizes sexual behaviour that boys and girls should practice and accept among themselves, both as youth and later as adults. 

So far —and this bill has bounced around Parliament since 2022— no one is litigating the harm.

But how to fix it?

The first thing the bill does is to identify what pornography is going to be off limits. There is a series of legal fences drawing the line between regulated and unregulated websites and content:

  • The porn site must be a commercial service. But only website operators are responsible: search engines and ISPs are not liable.
  • Websites that allow kids to view porn aren’t breaking the law if the content is for a “legitimate purpose” relating to science, education, medicine or ——this is the question-begging  loophole— “the arts.”
  • The definition of porn is carefully drafted: “pornography means any photographic, film, video or other visual representation, whether or not it was made by electronic or mechanical means, the dominant characteristic of which is the depiction, for a sexual purpose, of a person’s genital organs or anal region or, if the person is female, her breasts.” I italicized the words inviting interpretation. 
  • Websites will be expected to implement age verification technology.
  • The characteristics of acceptable age verification technology will be set by government regulation described in section 12 of the bill. Notably the pornographer must contract with a third party service (of which there is a growing industry) that protects data privacy and destroys the data as soon as viewer age is verified. 
  • Porn sites that violate the law can be convicted of a crime but the penalty is a large fine ($250,000 for a first offence) rather than jail. As the likely offenders will be foreign sites that ignore Canadian laws, the legislation provides for a yet-to-be-named government regulator to warn the site and back it up by going to court to seek a site-blocking injunction. The site blocking powers include a de minimus rule that tolerates blocking non-pornographic content on the same site. 
  • The bill comes into effect one year after it passes the House.

The bill has the support in principle of a majority of MPs in the House. The NDP,  Bloc and Conservatives support it. The Liberals do not. 

An earlier, slightly less well tuned, version of the bill got through the Senate and made its way to the House of Commons, only to be wiped off the order paper by the April 2025 federal election. Prior to the election writ dropping, the bill had languished undebated in committee for nine months, suggesting the three parties in support of the bill in principle had other priorities.

The policy support for protecting vulnerable youth, especially girls, comes from both progressive and conservative directions. Getting tough on porn is a long time conservative issue, now making common cause with feminist-inspired safety concerns. Miville-Dechêne is in the latter camp having once led Québec’s Council on the Status of Women (and a 25-year career as a prominent television journalist). 

The bill also has some solid polling support, I’ve provided a link to a Leger poll below.

The Liberals under Justin Trudeau fought the bill and held it up in the House until it died. An interview with Miville-Dechêne that I will publish this weekend provides some insight into that.

Now that the bill is back in a new session of Parliament we will have to see if the Carney PMO takes a different approach to the issue. 

The bill has passed second reading in the Senate without serious opposition and third reading approval ought to happen quickly. Then the bill goes to the House where the all important gatekeeping in House committee must be navigated. Even if the bill is opposed by the Liberal government, S-209 is not a “private member’s bill” that can be shunted to the back of the queue. As a Senate bill, and without a majority government controlling committee votes, S-209 might grab the Parliamentary spotlight sometime in the next year. 

The bill was once denounced by Michael Geist as “the most dangerous Internet bill you never heard of.” Canadian privacy activist David Fraser has a YouTube video that parses the legalities of the legislation, salted with some unlawyerly insults of the bill’s supporters.

The kind of things you will hear in opposition to the bill include:

  • Age verification technology may not protect privacy and we should rely on parental, not state, regulation.
  • Site blocking injunctions may go beyond “de minimus” intrusions on non pornographic content and usher in fast and loose censorship of the Internet.
  • Regulating porn is for Puritans, “finger waggers and pearl clutchers.” (Fraser’s words)

It’s also important context that age verification for porn bleeds into broader policy issues.

Other countries are further ahead of Canada on age verification for porn sites, in multiple American state jurisdictions as well as the United Kingdom. The US Supreme Court just ruled it constitutional.

But age verification is also the enforcement mechanism for legislation that goes beyond access to porn to viewing all sorts of social media content deemed harmful, so opponents see S-209 as the proverbial slippery slope. The Americans and the British are well underway with this and Canada’s federal justice minister is contemplating the revival of the Liberals’ own online harms bill.

These kinds of debates echo the big question that you’ve read about here and elsewhere for the past five years: is policy based regulation of content over the Internet acceptable, or is the wild and free Internet untouchable?

***

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I can be reached by e-mail at howard.law@bell.net.

This blog post is copyrighted by Howard Law, all rights reserved. 2025.

Catching Up on MediaPolicy – Election news deserts – “the Americans will run over us”- Andrew Coyne’s true secrets

August 5, 2025

The Public Policy Forum has followed up its February reportThe Lost Estate” on the state of local news with a study of news poverty at election time. 

“Uncovered” advocates scaling up a philanthropy-funded news pilot project launched during April’s federal election in select Canadian cities and rural areas. 

The harm identified in the Report is the lack of public engagement with federal MP candidates over election issues that have special resonance in the local area, for example fishery issues on either coast.

The report includes vignettes of five local races where news poverty might have been a big problem in April. The most glaring was the news desert of Bonavista in Newfoundland and Labrador, a rural riding won by the Conservatives in a razor-thin judicial recount.

On the other hand, the report finds that Yellowknife NWT was well served during election time by a robust local news ecosystem in an isolated regional hub.

The report echoes what TMU’s Local News Research Project identified some time ago: the worst effects of deteriorating news ecosystem are felt in rural areas but also in neglected suburbs of media-rich cities (Richmond BC and Vaughan ON are two such vignettes in the Uncovered study).

Uncovered recommends more philanthropic fundraising for local reporting in future federal elections. 

The message running throughout the Report is the importance of local news as a gateway to civic engagement —-and voter education—- for Canadians that are exhausted by polarizing national and international news and hungry for information about local issues that more directly affect their daily lives. 

***

The meme of New France’s fall to the English runs throughout the L’Actualité feature story, “What will remain of our national idols?”

Québec’s Culture Minister Mathieu Lacombe enthusiastically reposted this feature story in L’Actualité written by Guillaume Bourgault-Côté on Bill 109. That legislation tabled just prior to the summer recess is the CAQ government’s bid to compel foreign streamers to make French language audio and video content more prominent in Quebec. 

I’ve written about this issue more than once, I think it’s a political sleeper.

Lacombe’s bill is probably unconstitutional because the plan to make streamers offer a library of French language content as well as giving it prominence on the prime real estate of streamer and SmartTV home pages intrudes on federal jurisdiction over Internet broadcasting in the Online Streaming Act.

Were the CRTC already taking bolder steps to make French language content more easily discovered, his bill could be dismissed as performative politics. But the Commission hasn’t, at least not yet.

The L’Actualité story covers all of this familiar ground. Bourgault-Côté opines that “digital giants are now burying local cultures under tons of American productions. Quebec, supported by Senegal, France, and Switzerland, among others, is leading the resistance… while Ottawa dithers.”

Louise Beaudoin, the former provincial culture minister who wrote the key government report creating the policy foundation for Bill 109, is quoted saying “we absolutely must be as numerous as possible. Otherwise, the Americans will run us over.”

But the good inside baseball stuff comes at the end of the feature.

Bourgault-Côté chronicles the political tension between Lacombe and federal Culture minister Steven Guilbeault over the Carney government’s tip-toed support for Lacombe’s efforts to entrench stronger international legal standards, specific to Internet streaming, in amendments to the 2005 UNESCO convention on cultural diversity.

The energy in that tension is Lacombe’s opportunity to drive Bill 109 into the public eye during an election year in Québec and a minority Parliament in Ottawa. 

Lacombe’s CAQ is trailing the Parti Québécois in the polls and language policy is one way to make up that ground. 

In Ottawa, the Bloc Québécois may take up the standard. A federal Liberal minority government that owes its incumbency to its voter base in Québec cannot afford to leave too large a gap between a cautious approach to regulating foreign streamers and cultural nationalism. 

And then there’s the uncomfortable situation for the new leader of the provincial Liberals, former federal Heritage minister Pablo Rodriguez (the sponsor of Bill C-11, the Online Streaming Act). If it comes to a federal-provincial scrap over Bill 109 or Canada’s approach to strengthening the UNESCO convention, whose side is Mr Rodriguez on? 

The next UNESCO event is scheduled in Barcelona at the end of September and no doubt Lacombe will try to put the federal Liberals on the spot. 

And when Lacombe’s Bill becomes law and his government implements regulations on French language content, there’s the strong possibility of a legal challenge by the foreign streamers. At that point, the federal government will have to decide whether to endorse the streamer argument that a provincial government has no jurisdiction over online broadcasting. 

***

Here’s a short but interesting read. Harrison Lowman interviews Andrew Coyne in the The Hub

I think we could designate Coyne as Canada’s best known English-speaking intellectual, thanks to his considerable talent but also his privileged positions in the Globe and Mail editorial pages and CBC’s At Issue television panel. 

I’ve long written off Coyne as an irredeemable libertarian (sorry, libertarians) who is only brilliant when I agree with him (which is usually when he’s being pragmatic about domestic policy or commenting on international affairs). 

In the interview, Coyne gives us some insights into his thinking about what it means to be Canadian as opposed to North American.

His comments about the Canadian Charter of Rights suggest his free market liberalism is tempered by a pragmatism and respect for collectivist public policy. It takes a true policy nerd to say I’m a fan of constitutionally reasonable limits on freedom.

But when it comes to media and cultural issues, what Coyne is missing or dismissing is an appreciation of the overwhelming, anti-competitive American market power in the Canadian attention economy. 

That was why he could never see how the Online News Act was (at least in its original design) a competition remedy to Google and Meta abusing their gatekeeper power to stiff Canadian news outlets on a fair licensing fee for their content.

Same thing with the foreign media-tech juggernaut in video and audio entertainment.  Same thing with his support for defunding the CBC. 

***

The AI Death Star posts that recently appeared in this space raised the question of where the AI giants are going to get reliable information for their products if they put news outlets out of business. 

That prompted a reader to remind me about the agricultural aphorism “don’t eat your seed corn.”

Wouldn’t you know it, the Globe and Mail’s Ian McGugan had the same thought in this insightful analysis.

***

If you would like regular notifications of future posts from MediaPolicy.ca you can follow this site by signing up under the Follow button in the bottom right corner of the home page; 

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I can be reached by e-mail at howard.law@bell.net.

This blog post is copyrighted by Howard Law, all rights reserved. 2025.

Catching Up on MediaPolicy – Our Canadian AI Death Star – do our musicians stand a chance?

AI generated image – OpenAI

July 31, 2025

The latest development in the AI Death Star powering up to blast news journalism is Google’s AI Mode.

AI Mode is the longer form iteration on Google’s AI Overviews that presents brief information summaries in response to user inquiries on the Search platform. AI Mode has been released in the US and UK, but not Canada yet. It’s reported to be able to handle more complex information requests.

What AI Overviews and AI Mode have in common is they greatly reduce click throughs to news publishers’ websites that normally display as an algorithm-driven search response or links that might even be cited in the summary response.  That means less eyeballs and less advertising revenue for news outlets. Way less.

That outcome raises the obvious question: if news outlets become AI road kill, who will feed fresh content to AI?

All of this ought to be on Evan Solomon’s mind. The former career journalist is now the federal AI Minister. In a recent interview in Toronto Life, he said “my job is to develop a sovereign AI strategy while asking, ‘How can we make sure it causes more good than harm?”’

Solomon touted the opportunity for Canada to thrive in a job-rich AI sector. A more vigorous follow-up question might have been how he saw that happening. 

He didn’t point, but might have, to the recent announcement by Bell Canada and the Toronto-headquartered AI outfit Cohere of a co-venture targeting business and government clients in need of AI tools and the supporting infrastructure.

A Globe and Mail story makes it clear that Cohere is a favoured Canadian company, part of an evolving federal strategy for digital sovereignty. 

That includes a $240M allocation from the federal government’s $2 Billion “sovereign compute” program that is aimed at match-making Canadian suppliers with Canadian consumers of AI tools. 

“Cohere,” the Minister told the Globe, “is a really important company for us.”

Cohere, it might be noted, is being sued in the United States by various news publishers for ingesting copyrighted content without a license or compensation. As a former journalist, Solomon must have connected the public policy dots. 

***

The plight of the Canadian “musician middle class” —maybe we could just acknowledge it is more accurately described as an artist working class—  is the subject of the best thing I have read yet on the topic, Luc Rinaldi’s long feature “The Death of the Middle-Class Musician” that was just published in The Walrus.

There is a street narrative out there that says the music streaming gorilla Spotify is a soul-sucking, musician-impoverishing monster. Might be true, might not.

Rinaldi’s piece is sympathetic to musicians (hands up those who are unsympathetic) and, given the difficulty in obtaining data on musician earnings, provides strong indirect evidence that there is a real threat to Canada sustaining its supply of homegrown music. And that is despite the fact that Canada has a reasonably generous program of public and CRTC-generated subsidies, by international standards. 

But Rinaldi also wisely puts his finger on the important thing, namely the supply and demand for music in a sea of global content:

“The carrot that’s being dangled in front of an artist is their dream,” says Kurt Dahl, a Saskatoon-based entertainment lawyer…. “When people’s dreams are in play, they’re often not as rational or reasonable as they might be in the regular business world.”

 “You’re up against everything, from everywhere, all the time,” says Patrick Rogers, chief executive officer of Music Canada, an organization that represents the country’s major labels. “And if you’re willing to take on that challenge, the industry is in a position to help you.”

The challenge for media policy in music streaming is that the Internet-driven fragmentation of media creation and consumption has over rewarded a tiny elite of hit-makers, well beyond what existed pre-Internet. Everyone else lives on scraps.

Or at least that’s the view of media thinker Doug Shapiro, and he’s a smart guy. 

His latest blog puts forward his theory on this but i couldn’t get past the paywall ($18 per month, forget it) to read the whole thing. However his earlier and unpaywalled version is available here.

A crude summary of what he’s saying is that the “informational and reputational cascades” of popular content work fabulously well on the Internet. 

Roughly translated, he’s saying that algorithms perfectly capture our human tendency to sift through an ocean of content by paying attention to what other people found to be good content (informational) or what we need to consume because its a pleasing experience to connect with other human beings through a common culture (reputational). Maybe a little too perfectly.

***

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This blog post is copyrighted by Howard Law, all rights reserved. 2025.

Catching Up on MediaPolicy – Kings, jesters and cable lords – the AI Death Star – PBS and NPR defunded – the next Dhanraj leak – how to fix the CBC

July 24, 2025

It’s a sheepish admission I make this week, but sometimes American culture wars can be so darn entertaining.

Take the recent exchange of verbal gun fire between President Trump, the US cable lords, and late night TV hosts that began with Stephen Colbert slagging his show’s owner, Paramount, for paying off on a meritless Trump lawsuit against CBS.

In case you’ve been ignoring it all, here’s a short news report from Global News explaining it.

More to my low brow taste, I enjoyed Jon Stewart’s satiric bird-flip to all those bending the knee to Trump, “Go Fuck Yourself.”

***

And then there’s the end of the world as we know it, otherwise known as AI.

I say this only half facetiously. What AI tools like Google Overview appear poised to do to news journalism may well be catastrophic, it depends on consumer adoption. 

But it’s entirely plausible that Big Tech’s scraping of copyrighted Internet content —-there are now third party web crawlers that steal and sell paywalled stories to AI companies —— could mean that a handful of global AI engines become our dominant “news” outlets so long as there remain employed journalists somewhere to be scraped.

The US Senate is holding some hand wringing hearings on AI scraping but, so far, it has a performative feel to it. Congress doesn’t do anything anymore without the White House saying so.

Our own federal government is taking a wait and see approach. Or to put it in their own words, AI Minister Evan Solomon is “closely monitoring the ongoing court cases and market developments.” 

***

There are no obituaries written yet for public broadcasting in the United States.

Congress finally passed the defunding of NPR radio and PBS television. In the US, public broadcasting was not as robustly funded as it is around the rest of the world. The annual Congressional allocation of $500M (USD) was about half of CBC funding for eight times the population and ten times the number of stations.

The federal dollars were only a sliver of overall funding of 1,000 local NPR stations, 350 PBS outlets and the national flagship operations. But funding was always heavily weighted towards local stations and local programming: the “left wing” national content that Republicans so despise is almost entirely privately funded. 

The precise consequences of defunding at the national and local level will unfold in the coming months after the scheduled September payment doesn’t arrive.

Perhaps it’s not a surprise that NPR CEO Edith Chapin just quit. 

***

The real-life CBC drama of Travis Dhanraj’s lawsuit and public campaign against his former employer released another episode this week. 

The National Post posted a story sporting a “leaked” audio clip of Dhanraj and his union representative in a meeting with CBC manager Andree Lau. The occasion was a discussion of his April 2024 X-post criticizing CBC President Catherine Tait for declining to be interviewed about CBC finances on his show, Canada Tonight.

The edited audio file is a bit of a nothing burger. Dhanraj tries to get Lau to spar with him about the journalistic ethics of CBC coming down hard on him for the post. He gets the better of the argument, mostly by default. That’s about it.

It’s not clear from the clip whether the meeting was a formal grievance meeting, normally a privileged and off the record discussion. CBC responded to the Post story by saying Dhanraj broke his promise not to record the meeting.

***

The McGill University Centre for Media, Technology and Democracy released a report on its two-year study of what is to be done about the CBC. The Hill Times covered it here and CBC News reported on it too.

You may recall that the Centre published an opinion poll in October 2024 that revealed very high public support for the CBC, qualified by strong desire for “changes.”

One of the weird things about this result is that the CBC-is-no-longer-needed vote goes up after a hypothetical addressing of major criticisms.

As the report authors observe dryly, it’s difficult to distill “a single perspective” about what needs improvement other than the fact that 78% of Canadians want to keep the CBC running.

One thing the report is very good on is that “Canadians need to be assured of the value of the product they will be paying for. Regular and in-depth demographic reviews of the audience should be established to determine the kind of content Canadians require and the way they need to receive it. Models for this form of consolation include nation-wide town hall meetings, citizens’ assemblies and comprehensive surveys of the public (not merely existing members of the CBC/Radio Canada’s audience).”

In addition, the report says that Parliament should enshrine a cycle of five-year mandate reviews of the CBC so that the relevance of the public broadcaster to what Canadians want keeps up to date.

Times two, I say.

The report goes on to say that the CBC must “create meaningful, not performative, representation [in its content]. This goal addresses equity, diversity and inclusion, but more broadly, political and regional diversity as well.”

Put bluntly, the CBC needs to convincingly reflect an audience that is broader than the heavily urban demographics of its newsroom if it’s going to be funded and enjoyed by all Canadians.

Parliamentary funding of CBC is of course the bottom line, whether up or down. The Carney government has adopted former Heritage Minister Pascale St.-Onge’s report on the CBC and made European levels of funding its aspirational long-term target. According to St.-Onge, that would mean the moving the yardsticks from $32 per Canadian annually to $62.

Give the authors of the report credit, they have broken the taboo on pointing out that French-language Radio Canada already matches European levels of funding of $79 per head while English-language services (from which Indigenous language programming is financed) languish at $25 per capita.

The taboo remains powerful enough that the report doesn’t recommend what to do about this funding gap.

In the end the authors suggest their own idea of what Canadians want out of the CBC: “information sovereignty.” In other words, a public broadcaster that protects the national interest in reliable news and information.

Their argument is made in the context of rising existential threats to our national security; including extreme weather catastrophes, pandemics, threats to our territorial sovereignty, and the surprising aggression from the United States, a country that controls much of the media we already consume. They might have added AI as yet another existential threat to information sovereignty, as noted above in today’s post.

The 80-page report comes with a three page Executive Summary.

***

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Catching Up on MediaPolicy – The CBC’s nightmare – Canadian ban on TikTok down to the wire – ‘Empathie’ on Crave

July 17, 2025

Travis Dhanraj’s lawyer is shovelling more coal into the litigation furnace by calling upon disaffected CBC staff to e-mail her with their complaints. 

In a video interview with Candace Malcolm of Juno News, Kathryn Marshall issued a series of claims to illustrate former news host Dhanraj’s allegation that there are systemic violations of employees’ human rights at the CBC. Marshall said her inbox was full of e-mails from former staff and invited more.

It’s doubtful that any e-mails Marshall solicits from CBC staff past and present would be legally admissible in the human rights proceedings she says she is initiating on Dhanraj’s behalf. 

But they can be theatre props in the public trial that Conservatives hope to schedule at the Culture and Identity (formerly Heritage) parliamentary committee in the Fall. 

The feeding frenzy of conservative attacks on the CBC occasioned by the Dhanraj controversy is hardly surprising, it’s a permanent feature of our political landscape.

The blood in the water would be salacious evidence of feuding between Dhanraj and the CBC Parliamentary bureau, described by Marshall in her Juno interview. Specifically, her claim is that “a very close knit gang of Ottawa correspondents” were resentful of Dhanraj’s success in getting Conservative Party guests on his show and tried to bar those guests.

Marshall said she has “names, receipts and e-mails.” Those revelations, says Marshall, are “the CBC’s nightmare.”

Marshall also told Juno News that the CBC sought to punish Dhanraj for his X-post about then CBC President Catherine Tait by taking away his show, demoting him, and demanding he sign a gag order. She described CBC’s actions as “Stalinist” and later in the interview accused Dhanraj’s union the Canadian Media Guild of collaborating with the CBC (which would be illegal).

You get the picture.

The point of this kind of public campaign as an accessory to a legal claim is to define the public narrative. So far that story is not only how Dhanraj was treated by the CBC, but the credibility of CBC news journalism itself.

The credibility of the CBC might appear to be in jeopardy according to Dhanraj and conservative critics, but that does not seem consistent with public polling.

Last week Pollara released its annual poll on Canadian news media. CBC News continues to top the charts on both consumption and public trust. In fact, it went up over the last year, as the graphic below shows.

Still, the endless right-wing barrage against the CBC destabilizes the public broadcaster (I exempt from this tar-brushing the perceptive podcast episode posted today by The Hub’s Full Press, which is worth your time).

The CBC has done nothing to counter the Dhanraj narrative of a corrupt news culture —-it’s issuing rote denials while awaiting the filing of Dhanraj’s human rights complaint. The result is that a bunkered public broadcaster leaves a vacuum for others to fill and they are obliging. 

The appointment of a new CBC President in January is now seven months old. After an early spate of interviews given by Marie-Philippe Bouchard, we’ve heard very little about any new direction or bold plans to meet criticisms or disappointments expressed about the public broadcaster.

That might be because Bouchard doesn’t know yet if the Prime Minister intends to keep his campaign promise to boost CBC funding by 11% this year, and more over time. That was complicated by this week’s disclosure that as part of its spending review the Carney government has asked CBC to submit a draft plan for deep budget cuts in 2026-2027.

Or it could be that Culture and Identity Minister Steven Guilbeault is still working on a new bill to implement election promises of better CBC governance and long-term financial independence that would require amendments to the Broadcasting Act.

MediaPolicy asked the CBC if there are any significant announcements coming and was told to expect something in the Fall. A similar inquiry to the Minister’s office did not get a reply in time for publication.

***

AI-generated image

This past week TikTok ramped up political pressure to convince the Carney government to undo the federal government’s 2024 decision to ban TikTok the company from Canada, but not the app. 

The Liberals’ decision on TikTok followed US legislation to ban both the company and the app on the grounds of national security. Subsequently it was given a stay of execution by Donald Trump in his effort to force a sale of the Chinese-owned social media company to American interests.

Like the US law, the Canadian ban is based on undisclosed and/or hypothetical national security concerns about data security and the distribution of malevolent content, sponsored by China.

TikTok says it is winding up its Canadian operations to comply with the federal ban. Meanwhile it has bought media advertising pleading its case to the Canadian public, posted a posturing letter asking for a meeting with Industry Minister Melanie Joly, planned layoffs of its 350 Canadian staff and withdrawn its funding of Canadian creator development and event sponsorships.

Aside from the sponsorship largesse, TikTok is a major distributor of Canadian cultural content. According to Scott Benzie of the creator group Digital First Canada, TikTok has engineered its algorithm to be a heavy distributor of local content for users that activate the location service on the app, perhaps as high as 50% of “Nearby” and “For You” video recommendations. That’s something that foreign streamers won’t commit to.

With a lawsuit against the federal government on the go, TikTok says Ottawa has taken “measures that bear no rational connection to the national security risks it identifies.”

For its part, the government insists its investigation under the Investment Act in 2023 revealed “clear and legitimate concerns.”

When the  ban was announced in November 2024, then Innovation minister François-Philippe Champagne said “I’m not at liberty to go into much detail, but I know Canadians would understand when you’re saying the government of Canada is taking measures to protect national security, that’s serious.”

The entire mess feels a lot like the Facebook ban on Canadian news even though the circumstances are quite different.

Michael Geist has published several articles on the TikTok ban, including this one, which apart from the familiar Liberal-bashing on digital policy I found persuasive (and it’s worth marking the occasion).

Another angle on the problem is something every Canadian is painfully aware of these days: when the American elephant rolls over, we can easily get crushed. And the crushers run the White House. 

The troubling question is who isn’t cynical about the merits of the American ban of TikTok in the first place? Or that we are just obediently playing a vassal state by following suit? 

The answer to the dilemma is for Carney to publicly defend the ban with as much disclosure of the national security threat assessment as possible, or to repeal it. 

***

The Big Tech/Big Hollywood court challenge to mandatory cash contributions to Canadian media funds might get an answer from the Federal Court of Appeal before Labour Day.

Until then, the MediaPolicy boycott of streamer subscriptions (Netflix, Amazon and AppleTV) continues. I don’t miss two of them.

In their absence, I’ve made better use of my CraveTV subscription. That allows me to recommend an excellent new Canadian series, Empathie, a sad and funny drama set in a Montréal mental health facility.

***

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This blog post is copyrighted by Howard Law, all rights reserved. 2025.

The ticking media bombshell: Conservatives want hearings on Travis Dhanraj quitting the CBC

Television host and journalist Travis Dhanraj – CBC Photo

July 12, 2025

The fireworks ignited by television host Travis Dhanraj’s public resignation from the CBC will not be a flash in the pan. Not if the Conservative Party has anything to say about it.

The Conservatives are demanding summer Parliamentary hearings, a sequel to the political inquisition that followed the CBC’s annual payment of performance pay to some staff in late 2023.

Conservative headquarters also launched a volley of fundraising e-mails [download, below] citing Dhanraj’s “bombshell” resignation and reiterating its campaign promise to defund the CBC under the leadership of Pierre Poilievre, now standing in the August 18th by-election in Battle River-Crowfoot.

Dhanraj is a veteran television reporter and host who returned to the CBC in 2021 as a National Affairs correspondent and two years later, to much fanfare, as the host of Canada Tonight. At the time, CBC’s press release highlighted Dhanraj’s commitment to “unfiltered” and “diverse” journalism.

But last week Dhanraj announced his “involuntary resignation,” denouncing the CBC’s commitment to diversity as performative and promising detailed revelations to come. The CBC denied the allegations and cited confidentiality obligations as the reason for the brevity of its public reply. It also announced his resignation had been refused.

It’s difficult to recap the sequence of events leading up to Dhanraj’s pyrotechnic departure: much of it is connecting dots but will become easier to piece together once his lawyer Kathryn Marshall files a human rights complaint on his behalf.

The jumping off point appears to be Dhanraj posting a tweet in April 2024 that criticized the CBC for not making then-CEO Catherine Tait available as a news subject on his show, presumably to answer questions about the performance pay.

A public statement issued by his lawyer in February 2025 suggested that at one point he went on medical leave because of the psychological harm caused by CBC management’s alleged retaliatory actions towards him. 

In his own public statement, Dhanraj characterized his resignation this way:

It comes after trying to navigate a workplace culture defined by retaliation, exclusion, and psychological harm. A place where asking hard questions — about tokenism masquerading as diversity, problematic political coverage protocols, and the erosion of editorial independence — became a career-ending move.

In further statements, Dhanraj’s lawyer linked “the colour of his skin” to CBC’s alleged exclusion of conservative perspectives and news guests. Specifically, she said that CBC assumed when it hired him that as a brown man his news hosting would focus on liberal perspectives, to the exclusion of conservative guests and issues. A proven connection to race might violate the federal human rights code, if discriminatory.

Marshall welcomed a Parliamentary hearing and suggested that Dhanraj’s experience was “systemic” and goes to the heart of the CBC’s workplace culture and delivering on its public mandate:

Obviously, the issues that Travis has highlighted in his resignation letter and which will be part of a future legal proceeding are very serious, and they’re not just isolated to Travis. I’ve heard from a lot of other CBC employees who have similar stories. It’s a systemic issue, and it’s a workplace culture issue that goes very deep at CBC, which is very concerning given the amount of public funds going to the corporation and its public-interest mandate.

Sooner or later the Conservatives will take this up at the Culture and Identity committee, with MP Rachael Thomas grabbing the spotlight in the prosecutorial role she relishes. But it may bring more thunder than lightning due to the stifling effects of pending litigation.

If the Conservatives go as far as attempting a filibuster of other Parliamentary business (like government bills), the balance of voting power in committee will be held by Bloc Québécois MP Martin Champoux.  

***

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This blog post is copyrighted by Howard Law, all rights reserved. 2025.

First glimpse of the AI media apocalypse

Image generated by WordPress/Open AI tool

July 9, 2025

Two news items about AI technology just grabbed headlines.

The first was the revelation by the UK news outlet Mail Online that its traffic referral from Google’s search engine is nosediving thanks to Google’s “AI Overview.” 

The Overview AI tool is a huge upgrade on Google’s old practice of providing a top ranked text reply to search queries, usually mined from Wikipedia. Overview threatens to divert any but the most hardened skeptics from a page full of search results to a single high quality synopsis, sporting just two or three priority links. 

The decline of web traffic is a calamity for news and information websites that count heavily on advertising revenue from referred traffic. No one is saying this out loud, but it might drive more unpaywalled news websites to a subscription model. That has implications for media policy that supports the vast array of unpaywalled media serving the largest audience cohort: casual news consumers. 

But paywalled or not, as the publisher of the conservative opinion website The Hub groused it’s the “centre-left” mainstream media that’s likely to dominate the few hyperlinks offered by Overview. And that’s if Overview actually keeps displaying the links, Google’s AI competitors might not even bother.

Overview has the potential to accelerate  the shift of ad revenue from news creators to platforms like Google. Not only does Google already monopolize Search and exercise illegal market power in digital advertising, but like all AI companies it is harvesting news journalism without licensing the content.

Another story that surfaced last week was an apparent AI song “recorded” by a fictional band hitting it big on Spotify.

AI-music is the latest, and most profound, evolution of Muzak and its heir, the day-long passive music algorithm. This is a big challenge to music as an art and as a business. As such, it will have a major impact on how Canadian music is created, monetized and heard.

***

As a follow up to the most boring post I ever wrote, I can report that the CRTC’s public hearings on the distribution of Canadian content wrapped up on Monday with a closing appearance from the Canadian Association of Broadcasters. 

CRTC Vice-Chair Adam Scott is on the panel. Because of, or in spite of, the fact that his background is telecommunications rather than broadcasting he often puts his finger on the crucial questions.

Scott asked the CAB spokespersons what they thought of the regulatory scheme proposed by Friends of Canadian Media for foreign online distributors. 

The algebra of the Friends’ proposal is to establish an overall contribution to Canadian content roughly equivalent to that already made by Canadian cable companies; say, an expenditure tethered to 30% of Canadian operating revenue.

From that 30%, says Friends, online distributors could deduct their 5% cash contribution to Canadian media funds as well as the non-cash value of their marketing and prominence of Canadian shows on home screens and recommendation tabs. The flexibility of the “deduction” approach opens the door to bespoke contributions by different online businesses. 

CAB President Kevin Desjardins colourfully described the Friends proposal as more like a piece of cheese offered to the streamers than a mousetrap, meaning the CAB would still like to see some general commitments to Canadian content that all online distributors would have to meet. 

What was disappointing, Desjardins told Scott, was that the foreign streamers have avoided any formal commitments to Canadian content other than being left alone to carry on their business in Canada. He suggested that the Commission insist the streamers submit proposals in the post-hearing phase of the public consultation. 

Another question raised by the Commission got my union-antennae twitching.

In 2022 the Liberal government decided to handcuff the CRTC on the available tools to regulate online distribution platforms in the instances where Amazon, Apple, Roku et al might be willing to carry Canadian programming but only on their one-sided terms for revenue splits or screen prominence. 

Instead of conferring dispute resolution powers of arbitration on the CRTC, Bill C-11 restricted the Commission to adjudicating a standard of  “good faith negotiations,” backed up by powers to fine violators.

As any union rep (or small commercial party) knows, good faith doesn’t tip the scales of power imbalance. 

Canadian labour law remains mired in the good faith swamp after decades of jurisprudence that tries to distinguish between hard bargaining and illegal “surface” bargaining, ie the powerful party going through the motions while quietly messaging  “it’s my way or the highway.” In this legal fiction, the actual content of proposals is almost irrelevant. The stronger party can be as hard nosed as it likes.

The CAB referred the Commission to the American FCC’s definition of good faith bargaining. But it looks a lot like surface bargaining, to be honest.

In the labour world, Ontario passed a law in 1986 on the resolution of first contract negotiations following unionization, when corporate intransigence is at its worst. The main feature was binding arbitration, exactly what has been denied to the CRTC.

But the “good faith” standard was upgraded from the vexing “hard vs soft bargaining” distinction to a multi-factor test in which the Labour Board scrutinizes “the uncompromising nature of any bargaining position adopted without reasonable justification.”

If the CRTC pursued this kind of thinking about good faith, it would have an evidence-based opportunity to require an intelligible “justification” for playing hard ball and that it be reasonable.

***

Perhaps there’s been enough said about Prime Minister Carney’s blink on the Digital Services Tax.

Nah.

Hugh Stephens posted his view, similar to what you read in MediaPolicy. In the course of his piece, he links to a 2020 background study published by the Library of Parliament shortly after Royal Assent to the 2019 Bill C-82, which was the enabling legislation for the DST. 

The Library study takes the tax narrative from its origins in OECD discussions in 2013 to February 2020, a month after Joe Biden was inaugurated as US President.

It’s a useful read in a couple of ways.

First, the blow by blow history makes it clear that many of the urban legends around the DST are wrong. It was never a “data tax,” or an “audience tax,” or a “make Big Tech pay” tax.

It was a response to the problem of digital companies operating in Canada without “a permanent establishment” that makes the company’s product, like a factory or a mine. Without changes to the permanent establishment rule, foreign digital companies can freely offshore their Canadian revenues (or just pay tax on them in their home countries). 

The other thing that the Library study does is follow the negotiation narrative among OECD countries and with the US.

A first-term Trump was opposed to the DSTs being legislated in Europe and threatened retaliation. Once Trump lost the election to Biden, the UK and France moved quickly.

Canada lagged for reasons best known to the Finance Minister and the PM. Perhaps they were waiting to see if President Biden could get Congress to ratify a new tax treaty that would curb the use of offshore tax havens and agree to a minimum global corporate tax rate.

We know the outcome. Nice guys finish last. 

***

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This blog post is copyrighted by Howard Law, all rights reserved. 2025.

Catching up on MediaPolicy – dirge for the DST – Hollywood gets state cash – online harms legislation still cooking – who stole the music grants?

CBC explainer on the repeal of the Digital Services tax

July 5, 2025

Soon the wake for Canada’s digital services tax (DST) will be over and the news cycle will re-fire for the next trade battle with the United States.

Prime Minister Carney’s repeal of the DST was mocked by the victorious White House as a Canadian “cave.” Within hours, Canadian critics were queueing up, condemning Carney’s move as “bootlicking” (Lloyd Axworthy) and “bending the knee” (Le Devoir). On the other hand, Jean Charest described it as “a legitimate choice in a world of very bad choices.”

The MediaPolicy take on it is here.

The CBC has a hip two-minute cut-for-social video explainer narrated by the tattoo-embossed Nick Parker.

And for another take, here’s Paul Wells interviewing Canadian tax expert Allison Christians.

President Trump has promised to re-announce tariffs this week. Carry on Canada.

***

Two months ago when Donald Trump blurted out his desire to tariff US movies filmed abroad he got a tepid response from the supposed beneficiaries, Hollywood studios and the Big Tech streamers.

That’s because the studios and streamers make so many movies in Canada, at a competitive and government-subsidized cost, with world class quality.

What Hollywood really wanted was production subsidies from the US federal government, but so far that has not happened.

Now California is stepping up to the plate. Governor Gavin Newsom is prepared to double existing state subsidies to the tune of $750 million, quite a slice of the pie in what is otherwise a major austerity budget for the state.

***

The Canadian Press has reported that Justice Minister Sean Fraser is having a close look at the federal Liberals’ online harms legislation before re-tabling it.

Bill C-63 died on the order table when Mark Carney called a federal election in March. The core of the Online Harms Bill was to require social media platforms to establish content safety codes, legislation that polling suggests is a winner.

The add-ons to the bill were more controversial. The opportunity for private citizens to file anti-hate complaints against each other under federal human rights legislation, abolished by Parliament in 2012, is to be revived.

And the anti-hate provisions in the Criminal Code are to be strengthened with more severe punishments. MediaPolicy offered some perspective on that, here and here.

Prior to the election, then Justice Minister Arif Virani reluctantly split the controversial from the core elements of the bill into separate legislation. Neither bill was taken up by Parliamentary committees in the months leading up to the election call.

The CP story quotes the new Minister as wanting to make his own “fresh consideration of the path forward.”

At the very least the Minister may steal the best ideas from the Conservative election promise on deep fakes.

***

There are two 15-minute weekend reads on media that I can recommend.

In his personal blog “Fagstein,” the Montreal Gazette’s Steve Faguy has posted a short history of the CRTC’s decades long struggle to keep local television news solvent.

He’s done a great job. I know how hard it was as I tried to do the same in a shorter space in chapter six of my book on the Online Streaming Act. Faguy’s post is the learning resource that has been missing.

The other read is a feature story from the Globe and Mail’s Josh O’Kane. He’s updated his whodunnit reporting on the cyber-theft of $10 million from FACTOR, the music funding organization that distributes dollars contributed by government, radio stations and (subject to a court appeal) music streaming companies to Canadian musicians.

***

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This blog post is copyrighted by Howard Law, all rights reserved. 2025.