The Liberal government’s long-debated and controversial legislation aimed at regulating some aspects of online streaming and social media platforms has passed into law, more than a year since it was first introduced in the House of Commons.
Bill C-11, which passed the Senate and received royal assent on April 27, amends the Broadcasting Act to bring platforms like Netflix, Spotify, and Facebook under the regulating authority of the Canadian Radio-television and Telecommunications Commission (CRTC).
The legislation gives the CRTC a mandate to ensure that these digital platforms contribute to new Canadian content standards or else face steep penalties.
The CRTC, which is an independent public authority mandated to regulate and supervise Canadian broadcasting and telecommunications, will receive a policy directive from the Liberal government now that Bill C-11 has received royal assent.
The CRTC will then be required to develop regulations in line with the legislation following consultations with the Canadian public.
The regulator said in a statement on April 27 that it will “establish a modernized regulatory framework where all players contribute equitably.”
“The broadcasting system will ensure that online streaming services make meaningful contributions to Canadian and Indigenous content,” it said.
“We will share our detailed plan and launch the first public consultations shortly. … The views of all Canadians will be important at every step.”
As for regulating user-generated content—one of the most contentious aspects of the bill—the CRTC noted that it does not intend to do so.
Also called the Online Streaming Act, Bill C-11 has received heavy criticism from both the Opposition Conservatives and number of private stakeholders. Even the U.S. government voiced concern that the legislation will discriminate against American businesses.
Heritage Minister Pablo Rodriguez, however, has contended all the while that the government’s aim in passing the legislation is to give Canadian artists and content creators a “level playing field” with American competitors and media outlets, which often achieve greater reach with Canadian audiences.
But most criticism of the legislation has stemmed from its wording, which leaves open the possibility of the CRTC requiring not just large digital platforms to contribute to content standards, but also individual content creators on sites like YouTube—whose revenue directly corresponds with the number of views it receives on uploaded videos.
While testifying before a House of Commons committee in May 2022, CRTC chair Ian Scott admitted that Bill C-11 will grant the commission power to regulate user-generated content, but he said the regulator would not use it.
Before sending C-11 back to the House in February, senators voted in favour of proposing an amendment—along with over a dozen others—to exempt individual creators from the CRTC’s regulating authority under the legislation.
However, the Liberals rejected the amendment because Rodriguez said it would have negatively affected “the Governor in Council’s ability to publicly consult on, and issue, a policy direction to the CRTC to appropriately scope the regulation of social media services with respect to their distribution of commercial programs.”
The Senate said in its final motion when passing Bill C-11 that it would not insist on the House accepting its proposed amendments, but added that senators should take note of the government’s “public assurance that Bill C-11 will not apply to user generated digital content.”
Some content creators and NGOs have raised alarm at the prospect of the CRTC regulating individuals rather than just digital platforms.
Others have said that regulation of certain platforms—such as YouTube and Spotify—necessarily means regulating the individual creators that make up the bulk of content available on the platforms.
“It’s like promising not to regulate books while regulating what can be sold in bookstores,” said J.J. McCullough, a Canadian YouTuber, while testifying before the Commons Standing Committee on Canadian Heritage in June 2022.
“Given the broad powers of the CRTC, which Bill C-11 expands to include digital platforms, the Canadian YouTuber community is right to worry that the continued success of their channels could soon be dependent on their ability to make content that’s Canadian enough to obtain government endorsement.”
A number of private companies have also said the government’s definition of Canadian content outlined in the legislation is too narrow.
Representatives from both Spotfiy and Disney told the Senate communications committee in September 2022 that C-11’s definition of Canadian content is based more on the producers monetizing media rather than on the media creators themselves.
David Fares, Disney’s vice president of global public policy, pointed out that films and TV shows with almost fully Canadian casts and production teams would still not be considered Canadian content under the legislation if an American producer, such as Disney, owned the intellectual property.
“On the flip side, there are situations where content will be identified as Canadian content even though it doesn’t tell a Canadian story,” Fares said. “It’s not produced in Canada. However, it meets the point system and the [intellectual property] is owned by a Canadian.”
Meanwhile, the legislation was a source of heated debate while it was still pending in the House of Commons.
Conservative Party Leader Pierre Poilievre called it a “censorship” bill and even held up a copy of George Orwell’s dystopian novel “Nineteen Eighty-Four” while speaking about the legislation during question period on March 30.
On the same day, Liberal Government House Leader Mark Holland said the purpose of C-11 is to make sure “big tech” pays its “fair share” to Canadian content creators and artists.
Poilievre responded by saying “big tech” platforms will still “monopolize” Canada’s media landscape regardless of whether or not Bill C-11 passes.
“Their platforms will still dominate,” he said. “It’s just that government bureaucrats will be able to manipulate the algorithms to shut down the voices of individual Canadians.”
The Department of Canadian Heritage said in a news release on April 27 that “Canadian stories and music” will now be more widely available than ever on digital platforms on the country’s internet networks.
“The law will give Canadians more opportunities to see themselves in what they watch and hear, under a new framework that will lead to a modern definition of Canadian Content that better reflects our country’s diversity,” the release said.
“Canadian artists, producers, creators, and our cultural industry can now count on a fair shot at success in the digital age.”
The Canadian Press contributed to this report.