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‘Netflix tax’ for digital media likely to raise prices for consumers, experts say – Agassiz-Harrison Observer

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The cost of digital services and goods sold by foreign companies like Netflix will go up under a taxation plan the government wants to put in place next year, experts said Tuesday.

Ottawa said in its fiscal update released Monday it will require multinationals to collect GST or HST on digital products and services, which it said would add up to $1.2 billion over five years.

Sometimes labelled a “Netflix tax,” the measure would also apply to other services such as Amazon.com Inc.’s Prime Video or the Spotify audio streaming service, as well as digital products such as software applications.

The government says Canadian companies already collect those taxes when they make digital sales, so it’s only fair that foreign multinationals should do the same.

KPMG tax partner Joe Micallef said it’s likely Canadians will end up paying the taxes collected for the government by foreign multinationals.

“Right now, the way in which they’re delivering their services, they’re not responsible for the collection,” Micallef said.

“And so, effectively, it would mean that these charges would be appearing on (their) invoices.”

A regular monthly subscription for a streaming service that delivers video or music would be a simple calculation, with the tax rate applied to the purchase price.

But Micallef said it is be more difficult to estimate how much additional tax individual consumers, or businesses, will pay for other types of digital purchases, he said.

Something like gaming software might cost little or nothing itself, but offer the option for subsequent charges to add features that make the experience better.

“How many times? How many transactions? It adds up,” Micallef said.

Dwayne Winseck, a media industry researcher at Carleton University in Ottawa, also expects companies will add the price of the tax to the total sale price.

“I mean, this is really not a very substantial amount, when we’re talking about corporate finances,” said Winseck, who is a professor of journalism and communication.

He said that the term “Netflix tax” has become highly politicized and is often used as “code” for levelling the playing field between U.S.-based digital media companies and traditional Canadian broadcasters.

“And if the idea is to create a level playing field between those two services, then that by all means that makes great sense,” Winseck said.0

David Paddon, The Canadian Press

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Investors push for social media controls ahead of U.S. inauguration – Cape Breton Post

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By Ross Kerber

BOSTON (Reuters) – Pension fund managers and religious investors on Friday asked top social media companies to step up their content control efforts to reduce the threat of violence ahead of the inauguration of U.S. President-elect Joe Biden next week.

The effort is the latest pressure on Facebook Inc, Twitter Inc and Alphabet Inc over extreme rhetoric after the storming of the U.S. Capitol last week by supporters of President Donald Trump.

In letters sent on Thursday, the investors – including New York State Comptroller Thomas DiNapoli, the Service Employees International Union and the Unitarian Universalist Association – asked for steps including disabling the coding they said tends to elevate conspiracy theories and radicalizing content, and for the companies to continue to flag content with hashtags like #Stopthesteal.

In the longer run, boards and executives must review their “business model and reliance on algorithmic decision making, which has been linked to the spread of hate and disinformation online,” the letters said.

Alphabet representatives did not respond to questions. A Facebook spokesman said it has banned over 250 white supremacist groups and enforced rules like those barring militias from organizing on its platform. A Twitter representative cited actions it has taken like suspending accounts that mainly shared QAnon content.

Violent rhetoric on social media platforms has ramped up in recent weeks as groups planned openly for the gathering in Washington, according to researchers and public postings, prompting criticism of the companies for failing to take action in advance.

Twitter and Facebook banned Trump’s accounts last week as the tech giants scrambled to crack down on Trump’s baseless claims of fraud in the U.S. presidential election.

The activist investors together manage about $390 billion in assets but own relatively small stakes in the social media companies. Top shareholders in the space so far have declined to comment on their responses including BlackRock Inc Vanguard Group Inc and Morgan Stanley.

The bans on Trump have prompted concern among other investors that users and advertisers would leave for different platforms. Twitter CEO Jack Dorsey said the decision was correct but set a dangerous precedent. Facebook operations chief Sheryl Sandberg has said the company has no plans to lift its ban.

(Reporting by Ross Kerber; Editing by Cynthia Osterman and Raju Gopalakrishnan)

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Investors push for social media controls ahead of U.S. inauguration – The Guardian

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By Ross Kerber

BOSTON (Reuters) – Pension fund managers and religious investors on Friday asked top social media companies to step up their content control efforts to reduce the threat of violence ahead of the inauguration of U.S. President-elect Joe Biden next week.

The effort is the latest pressure on Facebook Inc, Twitter Inc and Alphabet Inc over extreme rhetoric after the storming of the U.S. Capitol last week by supporters of President Donald Trump.

In letters sent on Thursday, the investors – including New York State Comptroller Thomas DiNapoli, the Service Employees International Union and the Unitarian Universalist Association – asked for steps including disabling the coding they said tends to elevate conspiracy theories and radicalizing content, and for the companies to continue to flag content with hashtags like #Stopthesteal.

In the longer run, boards and executives must review their “business model and reliance on algorithmic decision making, which has been linked to the spread of hate and disinformation online,” the letters said.

Alphabet representatives did not respond to questions. A Facebook spokesman said it has banned over 250 white supremacist groups and enforced rules like those barring militias from organizing on its platform. A Twitter representative cited actions it has taken like suspending accounts that mainly shared QAnon content.

Violent rhetoric on social media platforms has ramped up in recent weeks as groups planned openly for the gathering in Washington, according to researchers and public postings, prompting criticism of the companies for failing to take action in advance.

Twitter and Facebook banned Trump’s accounts last week as the tech giants scrambled to crack down on Trump’s baseless claims of fraud in the U.S. presidential election.

The activist investors together manage about $390 billion in assets but own relatively small stakes in the social media companies. Top shareholders in the space so far have declined to comment on their responses including BlackRock Inc Vanguard Group Inc and Morgan Stanley.

The bans on Trump have prompted concern among other investors that users and advertisers would leave for different platforms. Twitter CEO Jack Dorsey said the decision was correct but set a dangerous precedent. Facebook operations chief Sheryl Sandberg has said the company has no plans to lift its ban.

(Reporting by Ross Kerber; Editing by Cynthia Osterman and Raju Gopalakrishnan)

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Investors push for social media controls ahead of U.S. inauguration – The Guardian

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 on


By Ross Kerber

BOSTON (Reuters) – Pension fund managers and religious investors on Friday asked top social media companies to step up their content control efforts to reduce the threat of violence ahead of the inauguration of U.S. President-elect Joe Biden next week.

The effort is the latest pressure on Facebook Inc, Twitter Inc and Alphabet Inc over extreme rhetoric after the storming of the U.S. Capitol last week by supporters of President Donald Trump.

In letters sent on Thursday, the investors – including New York State Comptroller Thomas DiNapoli, the Service Employees International Union and the Unitarian Universalist Association – asked for steps including disabling the coding they said tends to elevate conspiracy theories and radicalizing content, and for the companies to continue to flag content with hashtags like #Stopthesteal.

In the longer run, boards and executives must review their “business model and reliance on algorithmic decision making, which has been linked to the spread of hate and disinformation online,” the letters said.

Alphabet representatives did not respond to questions. A Facebook spokesman said it has banned over 250 white supremacist groups and enforced rules like those barring militias from organizing on its platform. A Twitter representative cited actions it has taken like suspending accounts that mainly shared QAnon content.

Violent rhetoric on social media platforms has ramped up in recent weeks as groups planned openly for the gathering in Washington, according to researchers and public postings, prompting criticism of the companies for failing to take action in advance.

Twitter and Facebook banned Trump’s accounts last week as the tech giants scrambled to crack down on Trump’s baseless claims of fraud in the U.S. presidential election.

The activist investors together manage about $390 billion in assets but own relatively small stakes in the social media companies. Top shareholders in the space so far have declined to comment on their responses including BlackRock Inc Vanguard Group Inc and Morgan Stanley.

The bans on Trump have prompted concern among other investors that users and advertisers would leave for different platforms. Twitter CEO Jack Dorsey said the decision was correct but set a dangerous precedent. Facebook operations chief Sheryl Sandberg has said the company has no plans to lift its ban.

(Reporting by Ross Kerber; Editing by Cynthia Osterman and Raju Gopalakrishnan)

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