As the alarming trend of link tax policies at the state, federal, and global levels continues, policymakers must study the harmful effects of this legislation where they have been implemented. This warning was echoed throughout a recent CCIA panel discussion featuring policy experts Erin Millar, Paula Bernardi, Axel Bruns, and Michael Geist. Moderated by Jeff Jarvis, the panel focused on past and present mandatory online news payments and their chilling effect on innovation and growth for the news industry and the online information ecosystem in Canada, Australia, and other parts of the world.
Ongoing Policy Proposals and Agreements
Moderator Jeff Jarvis began the discussion by outlining North America’s current legislative landscape, sharing concerns about the Journalism Competition and Preservation Act (JCPA) at the federal level, and recent legislation in New York and Illinois. He also discussed the recent partnership in California between Google and the government, which was agreed upon as the state was considering the California Journalism Preservation Act and provides funding from both parties for state and local newsrooms as well as a National AI Accelerator.
“The news industry…in California was arguing that for them Canada was a great success, whereas I know from the people I talked to in Canada, it was the opposite.”
Jeff Jarvis, Tow Professor for Journalism Innovation Emeritus, Newmark Graduate School of Journalism at the City University of New York
Understanding Canada’s Online News Act
University of Ottawa Research Chair Michael Geist explained Canada’s Online News Act (C-18), including its history and the ongoing concerns with the impact on the news industry. He noted that the Canadian government introduced the bill to address disruption in the media sector in attempts to negotiate deals with the digital platforms that host news content. However, this resulted in a significant decrease in traffic for smaller publications due to Meta no longer hosting news content within Canada.
“In legislation that was really designed to preserve the independence and the trust in media, saying that their viability and sustainability was placed at risk, what I think has happened is precisely the opposite. In many instances, we now see the public increasingly skeptical of media, in part because the government has become so enmeshed in their finances, which invariably starts raising the questions as to whether or not they are truly independent.”
Michael Geist, Canada Research Chair in Internet and E-Commerce Law, University of Ottawa
IndieGraf’s Erin Millar shared her firsthand account of the Online News Act’s devastating consequences on independent news outlets. She explained the importance of digital services in connecting publications with key audiences, noting that indigenous and immigrant communities and outlets were disproportionately affected by C-18. Millar also noted the importance of technology in connecting communities at times of crisis, noting critical disruption in online information sharing due to the fallout of the policy. She concluded by discussing the unintended consequences of chilling innovation and investment in the news industry, which resulted in pausing the expansion of many independent outlets.
“What that speaks to is the fact that a secondary unintended consequence of all of this was it created so much uncertainty in the market that it really put a chill on investment. Nobody was launching a new outlet because they weren’t sure what those audience channels would be. There was a real chill within existing organizations about investing in any kind of new innovation, expansion, or anything like that.”
Erin Millar, CEO and Co-Founder, Indiegraf Media
Link Taxes on a Global Scale
Internet Society’s Paula Bernardi discussed her research on the spread of link tax legislation, including in Brazil. She discussed how these proposals have shifted from legislative frameworks to broader copyright policies and content moderation laws and warned against these kinds of policies. Bernardi explained that these kinds of laws risk fragmenting access to information, harming small businesses, and the public’s ability to access essential information from reliable news sources.
“The backlash that we see in terms of trying to undercut large digital platforms market dominance…the government is actually succeeding in creating a market that disadvantages smaller players. The impact is really broad and in working with an open and globally connected internet…we really don’t want to see these excessive regulatory issues being implemented in our jurisdictions.”
Paula Bernardi, Senior Policy and Advocacy Advisor, Internet Society
Concerns with Australia’s News Media Bargaining Code
Queensland University of Technology Professor Axel Bruns shared his insights about Australia’s News Media Bargaining Code. Criticizing the Code’s assumption that digital services divert advertising revenue, he emphasized many solutions that can aid community newsrooms rather than enforcing problematic revenue-sharing agreements. He also pushed back against the claim that hosting news is important to the digital services that host links, arguing that rather, the links are important to the publications that depend on these services for crucial traffic that allows them to reach new audiences.
“The idea that news production is unprofitable because Google, Meta, and other platforms have somehow siphoned off online advertising revenue from its “rightful place” on news sites is simply wrong. The business model of news was broken when news publishers decided to give away their content for free on the Internet back in the mid-1990s.”
Axel Bruns, Australian Laureate Fellow and Professor in the Digital Media Research Centre, Queensland University of Technology
Lessons and Recommendations for the Future of News
At the conclusion of the panel, participants discussed their recommendations for the news industry moving forward, and what policymakers can learn as they look to aid smaller and local publications during a time of disruption. Michael Geist emphasized the need for governments to move beyond politically motivated actions and focus on sustainable support mechanisms for journalism instead. Erin Millar encouraged a shift in focus from preserving existing, often struggling entities to supporting innovative startups and new business models. She emphasized the importance of ensuring local organizations receive adequate support, given their important role in maintaining community information and engagement. Paula Bernardi echoed concerns about excessive regulation, stressing the need for balanced policies that encourage innovation while safeguarding public access to diverse information sources.
Overall, the challenges facing the news industry are complicated and the solutions must be well-considered and well-researched in order to have a lasting impact that both uplifts local publications and does not harm information sharing online. Governments must aim to support quality journalism in ways that maintain journalistic integrity and foster innovation. Lessons from Canada, Australia, and other nations offer critical insights for policymakers around the globe as they navigate this regulatory landscape. To learn more, watch the full event above.
