The state of big tech regulation in Canada, from privateness to tax policy

For yrs, Canadian governing administration coverage towards huge tech organizations was essentially a palms-off affair: having in the way not only threatened to hurt the economic climate, but voters could possibly rebel as perfectly. But as international tech platforms this sort of as Google and Facebook have developed, governments in this article and all-around the entire world have begun to look for out means to rein in their outsized influence and power. Listed here, the Post’s Barbara Shecter breaks down the state of major tech regulation in Canada, from privateness to tax policy and every little thing in among.



screen of a cell phone: As tech firms like Facebook and Google have grown in influence, governments around the world have considered ways to rein in their power.


© Supplied by Fiscal Put up
As tech firms like Fb and Google have developed in influence, governments around the world have regarded as methods to rein in their electric power.

What are the crucial challenges?

The vital locations where Canada is moving to regulate overseas tech platforms drop into four main buckets: destructive material these kinds of as loathe speech shopper and information privateness taxation and broadcasting/telecom and information. It includes a variety of government officers, departments, and businesses like the Division of Canadian Heritage, the Ministry of Innovation, Science and Industry, and the Department of Finance. The Canadian Radio-television and Telecommunications Commission and the Canada Revenue Agency are also included.

What about hate speech?

The large-profile ejection of previous United States President Donald Trump from Twitter and other social media platforms sparked a significant discussion on how to police hate speech and reduce disinformation on social media whilst at the exact time preserving liberty of speech and the correct to political expression. The Canadian authorities has mentioned it will shortly introduce laws that would make good on Key Minister Justin Trudeau’s pledge to drive the tech platforms to immediately take out unlawful material including dislike speech. “Our intention is to desk … legislation this winter season on on the internet harms,” a spokesperson for Heritage Minister Steven Guilbeault’s office environment claimed Friday. The law, if handed, would involve social media corporations to keep track of and eradicate unlawful material which includes loathe speech, terrorist propaganda, violent acts and boy or girl pornography. The division said the legislation also aims to regard flexibility of speech.

What about electronic taxation?

A handful of many years in the past, any point out of a “Netflix tax” despatched shoppers and voters into a tizzy and elected officials functioning for protect. Not anymore. The favourable tax standing of overseas tech platforms is now squarely in the government’s sights. In the slide financial assertion in November, finance minster Chrystia Freeland stated the federal federal government intends to put into action a “tax on corporations delivering electronic services” in Canada starting Jan. 1, 2022. Canada has been performing the OECD and additional than 100 other nations on a co-ordinated technique to world-wide tax reform that could include a taxing proper for nations around the world the place multinational companies are delivering electronic services to people — but there have been delays and Canada said it intends move ahead on its possess with the new actions predicted to boost federal revenues by $3.4 billion over five decades. Canada also ideas to start demanding “non-resident vendors” supplying electronic items and companies to Canadian buyers — this kind of as Netflix — to accumulate and remit profits tax (GST and HST).

What about information and privacy?

In November, Navdeep Bains, then Minister of Innovation, Science and Market, launched Monthly bill C-11, the  Digital Charter Implementation Act , which will overhaul the regulation governing the privacy of Canadians. The invoice claims significant economic penalties — much more significant to huge tech platforms this sort of as Google, Facebook, and Amazon — for breaches, and gives far more ability to individuals when it will come to the transfer of private data from 1 group to a further and the disposal of individual data. If handed, the regulation will limit the assortment of own info and demand corporations to document the purposes for which own data is collected, made use of, or disclosed (with continual updates if new functions come up).

What about broadcasting?

Guilbeault introduced Invoice C-10, the first big legislative amendments to the  Broadcasting Act  since 1991. The invoice would set “online undertakings” that transmit applications over the Internet within just the purview of the Canadian Radio-television and Telecommunications Commission. “Including on line action inside of Canada’s broadcast regulatory framework signals a big policy change,” according to law firm at DLA Piper. On the other hand, the legislation firm famous, it continues to be to be established what disorders and prerequisites the CRTC will impose on on the net suppliers at the time the invoice will become legislation.

What about information?

Guilbeault’s place of work has taken the lead when it comes to discovering a way to get large tech companies to spend for news content material they aspect on their platforms. Guilbeault has stated he is looking into versions adopted by France and Australia. “We are at the moment exploring choices for a made-in-Canada formulation that would finally lead to a extensive, coherent and equitable digital framework for both Canadian news publishers and digital platforms,” a office spokesperson stated Friday. France is extracting payment by means of copyright legislation, even though the Australian Senate is scrutinizing proposed legislation — already handed by the lower residence — that would mandate a compulsory bargaining code between the country’s media publishers and huge tech platforms this kind of as Google and Fb. The proposed code incorporates non-exclusion and arbitration mechanisms and would be overseen by Australia’s competitors authority.

In which does the opposition stand?

NDP heritage critic Alexandre Boulerice explained he is upset a couple of items did not make it into Invoice C-10, notably provisions governing social media platforms Facebook and Youtube. In addition, Boulerice mentioned he experienced been less than the impression the Liberal govt was likely to include things like a mechanism in the Broadcasting Act overhaul to compensate news written content creators whose do the job is featured on substantial tech platforms Google and Facebook. That didn’t come about. “Newspapers are struggling. They have to get some compensation for the actual journalistic do the job they are doing.”

NDP MP Charlie Angus, a member of the standing committee on accessibility to information and facts, privacy and ethics, explained the Liberal government is building progress with the promise of greater, more significant penalties for to rein in tech platforms that unsuccessful to participate or comply with Canadian attempts in the earlier. But he mentioned Ottawa should really be executing additional to hold the global tech giants accountable for how their algorithms feed facts to end users. “You would see the algorithms cleaned up genuine quickly if they ended up held liable,” Angus said.

The Conservative occasion has been critical of the rate of the Trudeau government’s action when it arrives to the safety of customer data and cyber protection. But there has been guidance for some of the tax issues, this sort of as demanding foreign digital gamers to accumulate and remit GST. In their election system in 2019, the Conservatives proposed a 3 per cent tax on Fb, Google, and Amazon that would be waived only if the tech companies invested and built on their functions within just Canada.