The CBC reports that Bill C-11, the Online Streaming Act, was passed and received royal assent on Thursday, April 27, 2023: Controversial bill to regulate online streaming becomes law.
“The bill makes changes to Canada’s Broadcasting Act. The legislation requires streaming services, such as Netflix and Spotify, to pay to support Canadian media content like music and TV shows. It also requires the platforms to promote Canadian content. Specifically, the bill says ‘online undertakings shall clearly promote and recommend Canadian programming, in both official languages as well as in Indigenous languages.’ The changes give the Canadian Radio-television and Telecommunications Commission (CRTC), Canada’s broadcast regulator, broad powers over digital media companies, including the ability to impose financial penalties for violations of the act. The government says the legislation is necessary to impose the same regulations and requirements in place for traditional broadcasters on online media platforms. Right now, broadcasters are required to spend at least 30 per cent of their revenue on supporting Canadian content.”
The bill doesn’t prescribe how the CRTC should direct undertakings to do this: “But the government is expected to clarify many areas of uncertainty through a policy directive to the CRTC. A Senate amendment that the House of Commons accepted requires the CRTC to hold public consultations on how it will use its new regulatory powers.”
Michael Geist, a law professor at the University of Ottawa, is an outspoken skeptic of the legislation. He speculates that:
“The legislation will head to its next phase including a policy direction consultation that will seek to clean up at least some of the uncertainty in the bill (that Bill C-11 was subject to so much scrutiny yet still leaves so much unanswered is hard to explain), followed by years of CRTC hearings and appeals. Sometime in the future – best guess would be 2025 or 2026 – digital creators will have been forced to make multiple trips to Gatineau to urge a hands-off regulatory approach and the industry will find that the bill generates far less than it expected. Further, those modest benefits will be accompanied by revised Canadian content policies that will leave some doubting whether the trade-off was worth it.”
My take: I worry about the concentration of administrative power in an unelected government-appointed board. And the unintended consequences! For instance, will smaller streamers just forgo Canada if this will increase their operating expenses? Will the definition of Canadian content change so much that the domestic television industry is threatened? Will the government be able to censor Canadian UGC? Cannot predict now.