While many feared the CRTC would jump at the chance for new Internet regulation, last week it surprised observers by rightly concluding that its consultation generated plenty of rhetoric about the dangers of an unregulated over-the-top video services market, but no evidence of real harm. Given the lack of evidence and the absence of entry barriers for Canadian companies to establish their own competitive offerings, the CRTC decided to open a “watching brief” with the promise to revisit the issue in another fact-finding exercise next year. The CRTC decision concluded “it is best to allow the over-the-top market to continue evolving, better measurement tools to emerge and entities that contribute to the policy objectives of the Act to take advantage of the many opportunities in this new environment.”
This is close to what I suggested might happen back in July, when I noted “given the lack of actual evidence – this has been a fear-finding exercise rather than a fact-finding one – the CRTC should surely label this a watching brief and wait until 2014.” There is a big difference between waiting until the next scheduled new media review in 2014 and kick-starting another examination of the issue next May, however. The CRTC message to the Online Broadcasting Working Group is “if at first you don’t succeed, try, try again.” By opening the door to two reviews in the span of a one-year period, the Commission hold on new Internet regulation may only be a temporary reprieve.
