The report that Google is conducting a national test that removes links to Canadian news sites for a small percentage of users sparked a predictable reaction as politicians who were warned that Bill C-18 could lead to this, now want to know how it could happen. None of this week's developments should come as a surprise. Bill C-18 presents Google and Facebook with a choice: pay hundreds of millions of dollars primarily to Canadian broadcasters for links to news articles or stop linking. Both companies are doing precisely what they said they would do, namely considering stopping linking (Google conducted the same tests in Australia several years ago).

Indeed, strip away the hyperbole and the bottom line is this: the costs of Bill C-18 are enormous (the government's Senate representative suggesting the bill could result in revenues to cover 35% of news expenditures of every news outlet in Canada) and the revenues from news for the platforms are not (Facebook says news only constitutes 3 percent of posts and Google does not even run ads on its Google News product). As some have noted, the government says the companies are stealing content if they link and blocking content if they don't.

Canadian Heritage Minister Pablo Rodriguez has blithely ignored the risks associated with Bill C-18 for months. By mandating payments for links, the bill creates a real threat to the free flow of information online. It also raises press independence concerns, may violate Canada's international copyright obligations, harm the competitiveness of independent media, and open the door to trade retaliation by the United States. But as the Google test demonstrates, everyone loses with the current bill. Trust in Google is undermined when it secretly degrades its own service, news organizations won't see new revenues if the companies stop linking and they will also lose the benefits of the links, and Canadians will find that the bill is an own-goal by the government that undermines the foundation of the Internet.

No one likes to get called on their assertions that Google and Facebook were bluffing when they warned that the prospect of removing news sharing or search results was real, but it is telling that Rodriguez and the bill's supporters continue to rely on misleading claims about the bill instead of making the case for its actual impact.

When it comes to tech companies, Canada needs better privacy laws, competition rules, greater transparency requirements, and more accountability. There is also room for support for journalism, ideally through a fund model with mandated contributions that would support actual journalism without getting into issues such link payments or copyright law. But the government has instead chosen payments for links in Bill C-18. This week confirmed what has been evident for months: that choice raises a host of serious concerns that result in no winners and a great many losers.