By Kyle Duggan and Zi-Ann Lum

Welcome to Ottawa Playbook. Let's get into it.

In today's edition:

→ The fallout from C-18

→ All eyes on Tuesday’s inflation figures, expected to reflect an increase

→ A first-of-its kind meeting of 45 Black politicians

A pedestrian in front of Facebook HQ. | Just Sullivan/Getty Images

LINK FIGHT LINGERS ON — Australia’s high-stakes standoff that saw Meta block news links on its platforms lasted eight days.

Welcome to the two-week mark in Canada.

However you measure it, given all the tinkering the company was doing in the weeks leading to its official rollout, the conflict has stretched on for a long time now with no sign of a speedy resolution on the horizon.

Out of his old job promoting the online news act that spurred the fight with Facebook, PABLO RODRIGUEZ finds himself still defending the law in his new role as transport minister.

Wearing a fluorescent yellow safety vest at an airport announcement last week, he was asked if he regrets how he handled things, now that outlets are experiencing social media traffic loss and news is fading from Canadians’ personal feeds.

“Not at all. We did the right thing,” Rodriguez said. “Status quo is not an option. Newsrooms are closing their doors.”

A screengrab from Instagram shows a message explaining that, "in response to Canadian Government legislation," certain content is unavailable in Canada.

Playbook has spent some time collecting views from key players and observers. Here’s what they said.

— The tech firms: RACHEL CURRAN, head of public policy for Meta Canada, said it’s purely a business decision: News has social value, but it doesn’t factor into Meta’s bottom line.

“There's nothing in the regulation-making process that can fix our fundamental concerns,” she said. “It's not a position we would like to be in.”

Is a resolution possible? “It's kind of in the government's hands at this point.”

MARK ISAKOWITZ, Google's vice president of government affairs and public policy for the U.S. and Canada, called it an “unworkable” policy and an “avoidable situation.”

The company continues to talk with the government but the conversations would have been a lot easier before the law was passed, he said.

“We were very specific about the changes we requested and the clarity we would need, and all of that was ignored. It wasn't until we were on the eve of royal assent that [the government] started paying some attention,” he said. “But the situation we find ourselves in now is it remains unclear how we could have the certainty in the regulatory process to continue to provide Canadians Canadian news links.”

— Caught in the crossfire: JEFF ELGIE, CEO of Village Media, which runs 25 news publications across Ontario, said while his company’s sites have taken about the traffic hit he expected, its mature markets will all be fine. But Facebook was a useful tool for launching in new markets. That is now on pause.

“I just think it's sad that this bill is potentially going to stall us or prevent us from growing and in my opinion will have devastating effects on others in the business that haven't been around as long and maybe aren't as mature in terms of business models and audience,” he told Playbook.

“The government needs to get [the tech companies] back to the table if they want there to be a healthy news ecosystem and they should do it soon. The longer this lasts — the noise will disappear for Facebook, and then it will be easier for them to stay out of it.”

— International proponents: ROD SIMS, on the success of Australia’s media bargaining code that Canada’s law is loosely based on: “Rather than the threat of arbitration being the thing that got [the tech companies’] attention, it was the threat of designation” under Australia's law.

Australia’s model was designed to fix a “market failure, in the sense that the media companies don't have the bargaining power to negotiate with Facebook and Google because while [the two] do need news ... they don't need news from any one or two particular entities.”

“I hope the parties [in Canada] get around the table and sort it out because if the Australian experience has anything to go by, there's deals to be done here which certainly benefit journalism and media.”

California Assemblymember Buffy Wicks speaks at the Capitol in Sacramento, California. | Rich Pedroncelli/AP Photo

BUFFY WICKS, a California state Assemblymember (D-Oakland) who has this same battle brewing over her Journalism Preservation Act when it comes up on the legislative calendar next year, tells Playbook she’s watching Canada’s fight, but California lawmakers aren’t scared.

“Part of me believes the threats that are happening in Canada are happening also strategically to impact policy in California and in other parts of the world,” she said. She thinks removing news links is a strategy that can’t last, particularly for search. “If you want to be the search engine that has everything under your tent for people to search, then have everything under your tent.”

— The fiercest critic: University of Ottawa professor MICHAEL GEIST: “There's really very little motivation for [Meta] to change its current position and you can see that in how that's playing out.”

That means media companies are left with a triple hit: “The loss of revenue as was anticipated from the legislation, the loss of existing revenue from deals that get canceled and the loss of referral traffic.”

— Feature read: Politico has more on the ongoing scrap in a feature out today on Canada’s clash of titans over the government’s attempt to prop up Canada’s struggling news industry.

Know someone who would like Ottawa Playbook? Please direct them to this link . Five days a week, zero dollars.

— Prime Minister JUSTIN TRUDEAU is on vacation.

— Deputy Prime Minister CHRYSTIA FREELAND is in Alberta. At 10 a.m. local time, she'll meet with First Nations community leaders near Edmonton. At 3 p.m., she will take part in an armchair conversation hosted by the Edmonton Chamber of Commerce.

— Ontario’s Finance Minister will release the province’s first quarter finances today. The Canadian Press has a preview.

— Bloc leader YVES-FRANÇOIS BLANCHET starts his four-day tour of New Brunswick, meeting with Campbellton Mayor JEAN-GUY LEVESQUE and Deputy Mayor MÉLANIE PARENT at 4 p.m.

— Bidding closes on that donair costume in the government of Alberta’s surplus auction at 6 p.m. local time. (Highest bid right now: C$16,020)

INFLATION NATION — The latest Consumer Price Index data lands Tuesday, with economists expecting the data to show a rise in inflation.

BMO’s top economist DOUG PORTERtold Canadian Press it should bring “a dash of reality for everyone.”

The last report got a lot of fanfare from Finance Minister CHRYSTIA FREELAND, when the top-line figure fell into the upper end of the central bank’s target range.

But that figure could rise to somewhere around 3.1 from 2.8 percent.

Economist MARC ERCOLAO at TD Economics writes the “last leg of the inflation fight will prove to be more difficult.”

The July data is expected to be pushed up by higher food and energy prices.

“Core inflation measures may decelerate slightly, but we expect stickiness of these prices gauges to persist until year-end.”

— What’s next: The Bank of Canada’s next interest rate decision lands Sept. 6.

DIY DEI — A first-of-its kind meeting that brought 45 Black politicians from across the country to the Hill for a summit last week became a reality thanks to ad-hoc funding by MPs.

The Canadian Congress of Black Parliamentarians attracted members representing all levels of government. Over three days, they moved through non-partisan discussions about the unique experiences of Black Canadians, education, health care, anti-Black and systemic racism and healthcare. Part of the mission is to seek equity and improve communities.

— Support from federal members’ budget: “I saw it as a very good way to invest in the future of this country,” group co-chair Liberal MP MICHAEL COTEAU told reporters Friday.

He gave a nod to Women and Gender Equality and Youth Minister MARCI IEN, NDP MP MATTHEW GREEN and Liberal colleagues GREG FERGUS and ARIELLE KAYABAGA for also pitching a portion of their office budgets to make the Ottawa summit a reality.

The meeting comes months after Couteau and Parliamentary Black Caucus co-chair Sen. ROSEMARY MOODIE led a federal delegation to Washington to meet members of the influential Congressional Black Caucus.

— What’s next: The association has telegraphed plans to meet quarterly. Couteau said while Black Canadians are still underrepresented in public office, the congress now has the capacity to form an association.

There's been “substantial growth” in the number of Black legislators and politicians in the country from a decade ago, specifically in Ontario and Quebec, Couteau said. “Fifteen years ago, there would have been maybe a dozen members.”

— The Globe’s SHANNON PROUDFOOT produced a brutal assessment of how PIERRE POILIEVRE comes across when he talks about working-class Canadians.

— SADIYA ANSARI writes from Berlin: "Germany’s far right isn’t on the doorstep of power. It’s already arrived."

— The Conservative leader is also facing criticism for his BBQ circuit talking points about the World Economic Forum and globalist elites in this summer dispatch by CP’s MICKEY DJURIC that’s got the bubble atwitter on X. KATIE TELFORD shared it while GARRY KELLER, former chief of staff for RONA AMBROSE, is taking issue with one of the sources. Journalist STEPHEN MAHER chimed in to defend the thrust of the story.

— The Star’s ALEX BALLINGALL runs down how housing is becoming a toxic problem for JUSTIN TRUDEAU. In another corner of the internet, MIKE MOFFATT dished out some praise for Poilievre’s housing message that cities should be required to “approve massive apartments next to all federally funded transit stations.”

— SPENCER TURCOTTE of CTV News Kitchener interviewed Wilmot Township Mayor NATASHA SALONEN, who has been priced out of the region’s housing market.

— The Star’s STEPHANIE LEVITZ takes a look at Poilievre’s strategic use of petitions to gather data and build out his base.

— The Hub’s STUART THOMSON writes: The future of the Conservative Party is more diverse (with a few caveats).

For POLITICO Pro subscribers, our latest policy newsletter from ZI-ANN LUM: 9-digit CO2 emissions intensify wildfire woes.

In other news for Pro subscribers:

— What Elon Musk can learn from Mark Zuckerberg’s Washington flop.

— China lifts bans on group tours in boon for global travel industry.

— Russia is winning the grain war with Ukraine.

— Biden's climate law stokes fresh fights in the states a year after passage.

— Sam Bankman-Fried sent to jail while he awaits trial.

Birthdays: HBD to Senator TONY LOFFREDA and former senator RAYNELL ANDREYCHUK.

Got a document to share? A birthday coming up? Send it all our way. 

Spotted: Green Party Leader ELIZABETH MAY, en route to Ottawa, “taking the long way from British Columbia.” h/t The Globe’s IAN BAILEY.

LAUREEN HARPER making coffee outdoors.

POILIEVRE, at the Canada Kabaddi Cup in Hamilton and Taste of Vietnam festival in Toronto over the weekend.

Movers and shakers: Former Conservative leadership aspirant ROMAN BABER won the nomination race to rep the party in York Centre for the next election.

Media mentions: DUNCAN MCCUE was honored with the NAJA-Medill Milestone Achievement Award at the NAJA Winnipeg conference.

Yukon-based journo and author EVA HOLLAND has activated an OOO notification: “Got married!”

Métro Média is folding. “Time was my worst enemy and what I feared unfortunately happened, but suddenly and abruptly,” company president ANDREW MULÉ said in a statement.

Farewells: Policy Magazine has this reflection on the late RICHARD DICERNI, penned by Canada’s United Nations representative BOB RAE: “He was wise, funny, adroit and invaluable to many as a good friend.”

Friday’s answer: BILL CALLAHAN and JEAN CHRÉTIEN signed the agreement that led to the establishment of Gros Morne National Park and the historic sites at L’Anse aux Meadows and Port au Choix.

STEVE BARTLETT wrote about the deal in this 2010 Saltwire feature.

Props to RAYLENE LANG, PATRICK DION, GORDON RANDALL, ELLA  D’SILVA, GERMAINE MALABRE and TRISTAN DENNISTON. 

Monday’s question: On this date in history “… a series of faults caused by tree branches touching power lines in Ohio, were then complicated by human error, software issues, and equipment failure.” What happened next?

Send your answer to [email protected]

Playbook wouldn’t happen without: Luiza Ch. Savage, Sue Allan and David Cohen.

Want to grab the attention of movers and shakers on Parliament Hill? Want your brand in front of a key audience of Ottawa influencers? Playbook can help. Contact Jesse Shapiro to find out how: [email protected].

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