C-18 is no more a violation of the national treatment principle than the EU’s Digital Markets Act , which targets the anti-competitive behaviour of “internet gatekeepers,” who happen to be prominently
represented among U.S.-based tech companies. The U.S. government has not objected to the DMA on national treatment grounds . Such criticisms accuse the EU of targeting U.S. “gatekeeper” companies in order to protect competing European companies. In the case of Canada, there is no suggestion that any provision of C-18 is designed to offer trade protection to Canadian companies competing with the “digital news intermediaries.
Google and Meta produce not one column inch of news content yet benefit from the readership that this content attracts through domination of digital ad markets. It is this anomaly that the legislation is designed to correct. The argument that the non-discrimination provisions in C-18 are, in effect, a “must-carry” requirement for Canadian news content are also inaccurate, negating the argument that this is a violation of the investment chapter of the USMCA that prohibits the imposition of “performance requirements” on investments from a NAFTA country.
Scare tactics and threats of U.S. retribution under the USMCA/CUSMA are a paper tiger. Those arguments are unconvincing and tendentious, and the likelihood of the U.S. Government actually bringing a CUSMA case if C-18 becomes law are somewhere between very slight to zero. And if they did, the case would almost certainly fail.Share this article in your social network
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