Canadian Heritage Memorandum, December 8, 2020, ATIP A-2020-00498
Bill C-10
The Online Streaming Act in Jeopardy: U.S. Takes Aim at the CUSMA Cultural Exemption With Threats of Bill C-11 Retaliation
From the moment it was first introduced as Bill C-10 in the fall of 2020, it was readily apparent that mandated payments by foreign streaming services to support Canadian content would face a trade backlash with the U.S., with the real prospect of trade retaliation. In fact, I wrote about the issue days after the bill was tabled, warning that an uneven playing field for benefits – foreign companies required to contribute but banned from benefiting – was a risky approach. Those warnings were dismissed by the government, cultural lobby groups, and supporters of the bill who assured critics that Canada’s cultural exemption under CUSMA provided a shield against U.S. retaliation.
It took years for Bill C-10 – later Bill C-11 – to become law as the Online Streaming Act, but now the bill has come due. Weeks after the U.S. Trade Representative (USTR) specifically identified Canadian digital laws as a target in CUSMA renegotiations, House Republicans introduced the Protecting American Streaming and Innovation Act, a bill that would mandate an investigation into the Canadian law and open the door not only to trade retaliation but also to a change in how the cultural exemption is applied.
Bill C-11’s Foundational Faults, Part Two: The Regulate-It-All Approach of Treating All Audio-Visual Content as a “Program”
My first post in a series on foundational faults in Bill C-11 focused on the virtually limitless reach of the CRTC’s jurisdictional power over audio-visual services. The starting point in the bill is that all audio-visual services anywhere in the world with some Canadian users or subscribers are subject to the Canadian jurisdiction and it will fall to the Commission to establish thresholds exempting some services from regulation. However, even with some exemptions, the Canadian approach will require registration and data disclosures, likely leading many services to block Canada altogether, reducing choice and increasing consumer cost.
The expansive approach in Bill C-11 isn’t limited to its jurisdictional reach, however. Not only does the law have few limits with respect to which services are regulated, it is similarly over-broad with respect to what is regulated, featuring definitions that loop all audio-visual content into the law by treating all audio-visual content as a “program” subject to potential regulation.
Lobby Harder: Canadian Heritage Minister Pablo Rodriguez Issues Industry Call to Action to Support Bill C-11
Canadian Heritage Minister Pablo Rodriguez appeared at the CMPA’s Prime Time conference last week, calling on the film, TV and broadcast sectors to become even more vocal in defending his Bill C-11. The bill, which has been the top lobbying priority of the sector for years, opens the door to regulating user generated content and asserts jurisdiction over all audio-visual services worldwide. There are several elements worth noting in the question-and-answer session with Rodriguez, not the least of which is the insistence on inaccurately claiming the new bill addresses concerns with regulating user generated content. When asked about the issue, Rodriguez responded:
Bill C-11’s Foundational Faults, Part One: The Nearly Unlimited Global Reach of CRTC Jurisdiction Over Internet Audio-Visual Services
My initial post on Bill C-11, Canadian Heritage Minister Pablo Rodriguez’s follow-up to Bill C-10, focused on the implications for user generated content. That post – along with this week’s Law Bytes podcast – notes that despite assurances that regulating user generated content is off the table, the reality is that the bill leaves the door open to CRTC regulation. Indeed, the so-called Online Streaming Act features an exception that means everything from podcasts to TikTok videos fit within the CRTC the power to regulate such content as a “program”. While this issue will rightly garner significant attention, it is not the only fault that lies at the very foundation of the bill.
The Law Bytes Podcast, Episode 116: Is This Podcast a Program Subject to CRTC Regulation Under Bill C-11?
The government’s Internet regulation plans were back on the agenda last week as a “what we heard report” was released on online harms and Bill C-11 – the sequel to last year’s controversial Bill C-10 – was introduced by Canadian Heritage Minister Pablo Rodriguez. The Law Bytes podcast will devote several episodes to the bill in the coming months. For this week, however, rather than inviting a guest to discuss a bill that people are still assessing, I appear solo and walk through the bill’s provisions involving user generated content. The podcast also highlights several ongoing concerns involving the near-unlimited jurisdictional scope of the bill, the considerable uncertainty for all stakeholders, the misplaced trust in the CRTC, and the weak evidentiary case for the bill.
Recent Posts
Setting Canada’s AI Policy Priorities: My Appearance Before the Standing Committee on Industry, Science and Technology 
The Law Bytes Podcast, Episode 262: Zack Shapiro on the Claude AI Native Law Firm 
The Online Streaming Act in Jeopardy: U.S. Takes Aim at the CUSMA Cultural Exemption With Threats of Bill C-11 Retaliation 
The Hidden Lawful Access Tradeoff: How Bill C-22 Lowers the Evidentiary Standards for Police Access to Subscriber Information 
The Lawful Access Privacy Risks: Unpacking Bill C-22’s Expansive Metadata Retention Requirements
