Ottawa’s tech plan still needs more work: experts
The Liberal government unveiled a plan to rein in tech giants in its throne speech this week, but experts say there is much more that should be included.
The government revealed Wednesday that it wants to address corporate tax avoidance by digital giants, ensure their revenues are shared more fairly with Canadian creators and require tech companies to contribute to the creation, production and distribution of Canadian stories.
“Web giants are taking Canadians’ money while imposing their own priorities,” the government’s throne speech said. “Things must change, and will change.”
The throne speech references to tech come after at least a decade of international goliaths — including Facebook, Google, Apple, Twitter and Netflix — raking in tens of billions of dollars each year, while avoiding regulations around taxation, competition and governance and straining Canadian media and creator earnings.
While many experts agreed Thursday on the need to further regulate such companies, they think the government’s priorities could use some tweaking.
“It’s pretty underdeveloped and it sounds more like broad ideas with a bit of rhetorical teeth,” said Dwayne Winseck, the director of the Canadian Media Concentration Research Project.
He has no problem with the government tackling tax avoidance or taxing digital streaming subscriptions like Disney+ or Netflix because he said they are “longer overdue” and can bring in cash.
However, he’d like to see the government consider some of the measures Australia is mulling.
The country has been pursuing a code of conduct to ensure tech companies don’t use their significant power to lessen competition in media and advertising and is also considering a law to force tech giants to pay media companies for the content hosted on their platforms by early October.
When asked about the throne speech, Facebook told The Canadian Press on Thursday in an email that it welcomes any new regulations that “support innovation, free expression, and the digital economy.”