OTTAWA — It’s no longer sustainable for social media companies to self-police content and time for governments to step in, the head of public policy for Facebook Canada said Friday.
That’s why the social media giant is welcoming ongoing work by the federal Liberal government to roll out a plan, Kevin Chan told the House of Commons heritage committee.
“Right now, it’s private companies like Facebook that are deciding what is and isn’t allowed on Facebook and we think that that doesn’t sit well with many people and they want public rules where there is legitimate public and democratic accountability,” he said.
“And so to the extent that lawmakers can agree on where that line should be drawn and then impose those lines on us, I think that would be certainly welcome.”
Heritage Minister Steven Guilbeault told the committee work is underway as part of a three-pronged response to the challenges that social media platforms and other major internet-based content providers pose to the ways media in Canada has been regulated, financed and policed in the past.
One part of the response is a bill currently before the House of Commons to modernize the broadcasting regime, and a second is work to address how major internet companies are taxed, and in turn how traditional media companies are financially supported.
Then there is the issue of online hate, Guilbeault said, which has been brought to the fore during the pandemic as Canadians relied on digital communications to be connected and informed.
“Unfortunately, some internet users are also exploiting these platforms maliciously, to spread hate, racism and child pornography,” he said.
“There is currently illegal content being uploaded and shared online to the detriment of Canadians and our society. This is simply unacceptable.”
The coming bill will define a regulatory framework on hate speech, child pornography and content that incites people to violence, Guilbeault said.
A regulator will be established to implement the new rules and have the power to levy fines for infractions.
Both Guilbeault and Chan’s appearance at committee came amid intensifying debate over the tension between free speech on social media platforms and calls for government regulation of it, especially in light of deadly riots in the U.S. Capitol earlier this month that had been co-ordinated and facilitated by content posted on social media.
Many social media platforms, for example, disabled the accounts belonging to former U.S. president Donald Trump in the aftermath of the riots, leading to allegations they were acting out of censorship, not to protect public safety.
But the two men hadn’t been called before the committee to debate those points.
Rather, they were summoned by the opposition to discuss whether it was appropriate for Facebook to have asked officials in Guilbeault’s department if they knew of anyone suited for a job at the social media company.
The Opposition Conservatives and NDP alleged the incident raises concerns about whether Facebook is too close to the government at a time when rules are being considered.
Chan and Guilbeault rejected that allegation, arguing the posting had been widely available in public circles and nothing untoward had happened.
The minister chastised MPs for even raising the issue, suggesting they were trying to undermine trust in the public service in a manner that undermined democracy itself.
“Canada has a world renowned public service and it’s integral that we don’t attack them to try and score political points,” Guilbeault said.
“I mean, we saw on Jan. 6 where that can lead, just south of the border.”
Chan was asked whether the foreign political interference on social media that was part of recent U.S. elections was seeping into Canadian ones.
None was reported during the 2019 campaign, Chan said, but work is underway to be on guard for the next time Canada goes to the polls, though there is no reason to believe things will be different then.
This report by The Canadian Press was first published Jan. 29, 2021.
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Facebook funds a fellowship that supports journalism positions at The Canadian Press.
Stephanie Levitz, The Canadian Press
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Donald Trump is set to secure on Tuesday a stock bonus worth US$1.3-billion from the company that operates his social media app Truth Social (DJT-Q), equivalent to about half the majority stake he already owns in it, thanks to the wild rally in its shares.
The award will take the former U.S. president’s overall stake in the company, Trump Media & Technology Group (TMTG), to US$4.1-billion.
While Mr. Trump has agreed not to sell any of his TMTG shares before September, the windfall represents a significant boost to his wealth, which Forbes pegs at US$4.7-billion.
Unlike much of his real estate empire, shares are easy to divest in the stock market and could come in handy as Mr. Trump’s legal fees and fines pile up, including a US$454.2-million judgment in his New York civil fraud case he is appealing.
The bonus also reflects the exuberant trading in TMTG’s shares, which have been on a roller coaster ride since the company listed on Nasdaq last month through a merger with a special purpose acquisition company (SPAC) and was snapped up by Trump supporters and speculators.
Mr. Trump will be entitled to the stock bonus under the terms of the SPAC deal once TMTG’s shares stay above US$17.50 for 20 trading days after the company’s March 26 listing. They ended trading on Monday at US$35.50, and they would have to lose more than half their value on Tuesday for Mr. Trump to miss out.
TMTG’s current valuation of approximately US$5-billion is equivalent to about 1,220 times the loss-making company’s revenue in 2023 of US$4.1-million.
No other U.S. company of similar market capitalization has such a high valuation multiple, LSEG data shows. This is despite TMTG warning investors in regulatory filings that its operational losses raise “substantial doubt” about its ability to remain in business.
A TMTG spokesperson declined to comment on the stock award to Mr. Trump. “With more than $200 million in the bank and zero debt, Trump Media is fulfilling all its obligations related to the merger and rapidly moving forward with its business plan,” the spokesperson said.
While Mr. Trump’s windfall is rich for a small, loss-making company like TMTG, the earnout structure that allows it is common. According to a report from law firm Freshfields Bruckhaus Deringer, stock earnouts for management were seen in more than half the SPAC mergers completed in 2022.
However, few executives clinch these earnout bonuses because many SPAC deals end up performing poorly in the stock market, said Freshfields securities lawyer Michael Levitt. TMTG’s case is rare because its shares are trading decoupled from its business prospects.
“Many earnouts in SPACs are never satisfied because many SPAC prices fall significantly after the merger is completed,” Mr. Levitt said.
To be sure, TMTG made it easier for Mr. Trump to meet the earnout threshold. When TMTG agreed to merge with the SPAC in October, 2021, the deal envisioned that TMTG shares had to trade above US$30 for Mr. Trump to get the full earnout bonus. The two sides amended the deal in August, 2023 to lower that threshold to US$17.50, regulatory filings show.
Had that not happened, Mr. Trump would not have yet earned the full bonus because TMTG’s shares traded below US$30 last week. The terms of the deal, however, give Mr. Trump three years from the listing to win the full earnout, so he could have still earned it if the shares traded above the threshold for 20 days in any 30-day period during this time.
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The B.C. government is putting its proposed online harms legislation on hold after reaching an agreement with some of the largest social media platforms to make people safer online.
Premier David Eby says in a joint statement with representatives of the firms Meta, TikTok, X and Snap that they will form an online safety action table, where they’ll discuss “tangible steps” towards protecting people from online harms.
Eby says the social media companies have “agreed to work collaboratively” with the province on preventing harm, while Meta will also commit to working with B.C’s emergency management officials to help amplify official information during natural disasters and other events.
“We have had assurance from Facebook on a couple of things. First, that they will work with us to deliver emergency information to British Columbia in this wildfire season that (people) can rely on, they can find easily, and that will link into official government channels to distribute information quickly and effectively,” Eby said at a Tuesday press conference.
“This is a major step and I’m very appreciative that we are in this place now.”
The announcement to put the bill on hold is a sharp turn for the government, after Eby announced in March that social media companies were among the “wrongdoers” that would pay for health-related costs linked to their platforms.
At the time, Eby compared social media harms to those caused by tobacco and opioids, saying the legislation was similar to previous laws that allowed the province to sue companies selling those products.
Last August, Eby criticized Meta over its continued blackout of Canadian news outlets as wildfires forced thousands from their homes. Eby said it was “unacceptable” for the tech giant to cut off access to news on its platforms at a time when people needed timely, potentially life-saving information.
“I think it’s fair to say that I was very skeptical, following the initial contact (with Meta),” Eby said Tuesday.
Eby said one of the key drivers for legislation targetting online harm was the death of Carson Cleland, the 12-year-old Prince George, B.C., boy who died by suicide last October after falling victim to online sextortion.
The premier says in announcing the pause that bringing social media companies to the table for discussion achieves the same purpose of protecting youth from online harm.
“Our commitment to every parent is that we will do everything we can to keep their families safe online and in our communities,” the premier said in his statement.
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VICTORIA — Premier David Eby has pushed the pause button on a contentious bill that would have allowed the province to recover health care and other costs attributed to the marketing of risky products in B.C.
Two dozen business and industry groups had called for the New Democrats to put the bill on hold, claiming it was so broadly drafted that it could be used to go after producers, distributors and retailers of every kind.
“It is safe to say that we got the attention of these major multinational companies,” the premier told reporters on Tuesday, citing the deal with Meta, Snapchat, TikTok and X, the major players in the field.
“They understand our concern and the urgency with which we’re approaching this issue. They also understand the bill is still there.”
The New Democrats maintain that the legislation was never intended to capture the many B.C. companies and associations that complained about it.
Rather it was targeted at Facebook owner Meta and other social media companies and the online harm done to young people. A prime example was the suicide of a Prince George youth who was trapped by an online predator.
Still, there was nothing in the wording of Bill 12, the Public Health Accountability and Cost Recovery Act, to indicate its application would be confined to social media companies or their impact on young people.
Some critics wondered if the bill’s broad-based concept of harms and risks could be used to prosecute the liquor board or the dispensers of safer-supply drugs, products with proven harms greater than any sugary drink.
Perhaps thinking along those lines, the government specifically exempted itself from prosecution under the Act.
This week’s announcement came as a surprise. As recently as Monday, Attorney General Niki Sharma told reporters the government had no intention of putting the bill on hold.
Tuesday, she justified her evasion by saying the talks with the social media companies were intense and confidential.
She said the pause was conditional on Meta and the other companies delivering a quick response to government concerns.
“British Columbians expect us to take action on online safety,” she told reporters. “What I’ll be looking for at this table is quick and immediate action to get to that better, safety online.”
A prime goal is addressing online harassment and “the online mental health and anxiety that’s rising in young people,” she said
“I want to sit down with these companies look at them face to face and see what they can do immediately to improve the outcomes for British Columbians.”
Meta has already committed to rectifying Eby’s concern that it should relay urgent news about wildfires, flood and other disasters in B.C. Last year, those were blocked, collateral damage in the company’s hardball dispute with the federal government over linking to news stories from Canadian media companies.
Eby says he was very skeptical about the initial contact from the companies. Now he sees Meta’s willingness to deliver emergency information as a “major step” and he’s prepared to give talks the benefit of the doubt.
Not long ago he was scoring political points off the social media companies in the harshest terms.
“The billionaires who run them resist accountability, resist any suggestion that they have responsibility for the harms that they are causing,” said the premier on March 14, the day Bill 12 was introduced.
Given those characterizations, perhaps the big, faceless billionaires will simply direct their negotiating team to play for time until the legislation adjourns as scheduled on May 16.
“The legislation is not being pulled and we’re not backtracking,” said Sharma. “We can always come back and bring legislation back.”
The government could schedule a quick makeup session of the legislature in late May or June or even in early September, before the house is dissolved for the four-week campaign leading up to the scheduled election day, Oct. 19.
More likely, if the New Democrats feel doublecrossed, they could go back to war with the faceless billionaires with a view to re-enacting Bill 12 after a hoped-for election victory.
Even if the New Democrats get some satisfaction from the social media companies in the short term, they have also framed Bill 12 as a way to force the marketers of risky products to help cover the cost of health care and other services.
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