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Television by ccharmon (CC BY-ND 2.0) https://flic.kr/p/4TWb7g

The CRTC TalkTV Hearing: The Gap Between Can’t and Won’t

In August 1999, I wrote my first technology law column for the Globe and Mail. The column was titled The Gap Between Can’t and Won’t and it focused on the CRTC’s new media decision that was released earlier that year. The decision was the first major exploration into the applicability of conventional CRTC regulation to the Internet, with the Commission ruling that it had the statutory power to regulate some activities (such as streaming video), but it chose not to do so.

That column came to mind yesterday as I read through some of the CRTC’s TalkTV transcripts and listened to Jesse Brown’s Canadaland podcast on the prospect of a “Netflix tax.” It seems to me that both the discussions before the CRTC (particularly the CBC’s decision to urge the Commission to establish a fee-for-carriage model and a Netflix tax) and the Brown podcast with Steve Faguy fail to distinguish between the gap between can’t and won’t.

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September 16, 2014 — 5 comments — News
Conservative Party on Netflix Tax, https://twitter.com/CPC_HQ/status/509514438043791360/photo/1

Ontario Not Alone in Seeking Netflix Regulation: CBC, Government of Quebec, and Cultural Groups Making Similar Demands

The Government of Ontario’s call for regulation of online video services has generated considerable attention and a government campaign against what it is calling a “Netflix tax.” While the Government of Ontario has tried to back pedal on its request, the newly released CRTC transcript confirms that government officials were warned about the likely public response. Indeed, the following exchange with CRTC Jean-Pierre Blais foreshadowed the reaction:

THE CHAIRPERSON: To put a blunt face on it, you are inviting the CRTC to regulate Google, YouTube and Netflix, aren’t you, and what advice will you be giving your Minister later on today when the potential headline is, “Government of Ontario wants to tax Netflix” or “Government of Ontario wants to regulate the Internet”?

MR. FINNERTY: Well, in fact what we recommend is that new media broadcasting activities be regulated. We did not recommend that the Internet be regulated, but we are very clear in our submission, both our written submission and in today’s presentation, that we believe that new media broadcasting activity should be regulated to support the principles of the Broadcasting Act and to support Ontario’s very important entertainment and creative cluster.

It is worth noting that the Government of Ontario is not alone on this issue. A review of submissions from many cultural groups reveals that “regulating Netflix” is a common theme in the submissions. For example, the Government of Quebec asks the CRTC to investigate the possibility of imposing payments on online video providers:

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September 10, 2014 — 10 comments — News
Minister Michael Coteau, Ministry of Citizenship and Immigration, at the Northern Leaders’ Forum by Premier of Ontario Photography (CC BY-NC-ND 2.0) https://flic.kr/p/i8qraN

Ontario Government Soft Pedals Netflix & Google Regulation, But Record Speaks For Itself

As CRTC Chair Jean-Pierre Blais anticipated, the Government of Ontario’s call for regulation of online video services attracted considerable attention, including comments from Canadian Heritage Minister Shelly Glover roundly dismissing the possibility. Glover stated:

“We will not allow any moves to impose new regulations and taxes on internet video that would create a Netflix and Youtube Tax.”

Last night, I received an email from a spokesperson for Ontario Minister of Tourism, Culture and Sport Michael Coteau that tried to soften the call for online video regulation. The spokesperson stated:

“The presentation today provided important elements for CRTC consideration as it undertakes its review. The government is not advocating for any CanCon changes, or that any specific regulations be imposed on new media TV, until more evidence is available.”

I asked for clarification on what “more evidence” means. The spokesperson responded that there will be over 100 presentations at the CRTC hearing and that all need to be heard from before moving forward.

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September 9, 2014 — 12 comments — News
Obama in the Backseat: Rally to Save the Internet by Free Press (CC BY-SA 2.0) https://flic.kr/p/osRvjr

Ontario Government Asks the CRTC To Impose New Regulations and Fees on Internet Giants Such as Netflix and Google

This afternoon, the Ontario government appeared before the CRTC as part of its future of television hearing. The Ontario government issued a clear call for new regulation of so-called new media companies such as Netflix and Google. The government states:

In order to create a more level playing field, the ministry recommends decreasing this regulatory imbalance. The ministry believes the best way to accomplish this is to expand the regulation of new media TV, rather than by lightening the current regulation of traditional TV.

What does the expansion of regulation involve?

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September 8, 2014 — 41 comments — News
GAC_0031 by icannphotos (CC BY-SA 2.0) https://flic.kr/p/8Z8CzX

Government Control Over Internet Governance: Proposal Would Give the GAC Increased Power over ICANN Board Decisions

The debate over Internet governance for much of the past decade has often come down to a battle between ICANN and the ITU (a UN body), which in turn is characterized as a choice between a private-sector led, bottoms-up, consensus model (ICANN) or a governmental-controlled approach. The reality has always been far more complicated. The U.S. still maintains contractual control over ICANN, while all governments exert considerable power within the ICANN model through the Governmental Advisory Committee (GAC).

While the GAC claims its role is merely to provide “advice” to ICANN, it often seems to take the view that its suggestions can’t be refused. Indeed, late on Friday, ICANN proposed a by-law change that would grant governments even greater control over its decision-making process. At the moment, ICANN looks to various supporting organizations to develop policies designed to represent the views of many different stakeholders, including the GAC. Where the GAC and the ICANN board disagree on a policy issue, the ICANN board decision governs provided that a simple majority of board members vote against the GAC advice and that ICANN provide an explanation for the decision.

ICANN is now proposing that the threshold be increased so that 2/3 of eligible ICANN board members would be required to vote against GAC advice in order to reject it.

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August 18, 2014 — 6 comments — News
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