The CRTC’s Online Streaming Act ruling, which triples the mandated payments for large Internet streaming services, has attracted widespread criticism given fears the approach could result in higher consumer fees and a trade backlash from the United States. Culture Minister Marc Miller’s response to the ruling was somewhat muted, saying the government was reviewing the changes and assessing their impact. The reluctance to take a stronger public position may stem from concerns about the ruling’s trade implications, as it appears to violate Canada’s trade obligations. The violation can be saved by invoking CUSMA’s cultural exemption, but that triggers the U.S. right to apply dollar-for-dollar retaliation. In other words, if the Online Streaming Act generates hundreds of millions in mandated expenditures, it will also spark matching tariffs targeting high-value Canadian economic sectors.
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The Online Streaming Act Bill Comes Due: Why the CRTC’s Latest Ruling Guarantees Years of Trade and Legal Battles
The CRTC yesterday released its much-anticipated Online Streaming Act decision that has been years in the making. Given the likely opposition from many stakeholders, it is virtually certain to lead to protracted trade and legal battles. From the moment the government introduced Bill C-10 in 2020, its goal was to impose regulatory obligations on Internet streaming services, treating them as online broadcasters and mandating that they pay into the Canadian system. This week’s ruling puts a number on the payments, building on an earlier 5% interim levy with an additional 10% in expenditure requirements. The combined 15% places Canada among the most expensive operating jurisdictions in the world for streaming services, with consequences that will undoubtedly affect consumer streaming prices. Moreover, with the streaming services already challenging the interim 5% levy in court, they will undoubtedly challenge this one as well. In fact, the battle will not be limited to Canadian litigation. The U.S. government, which has become increasingly vocal in its opposition to the Online Streaming Act, will view this decision as a provocation and escalate pressure on Canada to drop the legislation altogether. Culture Minister Marc Miller appeared to hedge in his reaction to the decision, suggesting that the government sees the headaches that lie ahead.
CRTC Says No Regulatory Action Planned Against Meta For Blocking News Links
In the months leading up to the effective date of the Online News Act, then-Canadian Heritage Minister Pascale St-Onge urged the CRTC to investigate Meta’s decision to block news links on its Facebook and Instagram platforms as its method of compliance. Pointing to reports of people screenshotting news articles and the use of other workarounds the blocking of news links that came in response to the Online News Act (Bill C-18), St-Onge said “I cant wait to see what the CRTC will do when the law is fully enforced on Dec. 19.” As the law took effect and the issue grew, the CRTC did indeed send Meta a letter in October 2024 asking for information on how the company was complying with the legislation. I wrote about this request soon afterward, providing a detailed analysis of the law that sought to explain why some news sites might fall outside the scope of the legislation along with the legal grey area of screenshots.
This week, the CRTC finally responded to Meta on the issue.
The Law Bytes Podcast, Episode 252: Len St-Aubin on the CRTC’s Plan To Modernize Canadian Content Rules
The CRTC recently released its much anticipated decision on Canadian content rules, the first of two decisions that could reshape broadcasting and film/TV production in Canada. The Commission promoted its Cancon approach as offering new flexibility into the system but the fine print matters as some changes may be more restrictive than they appear at first glance. To help make sense of the decision, Len St-Aubin, the former Director General of Telecommunications Policy at Industry Canada, joins the Law Bytes podcast. Len provided consulting services to Netflix until 2020 and has since been an active participant in the debate on Internet policy as part of the Canadian Internet Society.
Privacy Lost: How the Government Deleted Bill C-11’s Key Privacy Principle Just Two Months After Passing it Into Law
The Online Streaming Act, the government controversial reform to the Broadcasting Act, continues to attract attention given an ongoing court challenge and backlash from the U.S. government. But there is another element of Bill C-11 that is deserving of attention. Due to what is likely a legislative error, the government deleted privacy safeguards that were included in the bill only two months after they were enacted. As a result, a provision stating that the Broadcasting Act “shall be construed and applied in a manner that is consistent with the right to privacy of individuals” was removed from the bill, leaving in its place two-near identical provisions related to official languages. The net effect is that with little notice (Monica Auer of FRPC spotted it), the Broadcasting Act has for the past two years included an interpretation clause that makes no sense and efforts to include privacy within in it are gone.
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