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.
Fair Dealing by Giulia Forsythe (CC BY-NC-SA 2.0) https://flic.kr/p/dRkXwP
Copyright
Not Ready for Prime Time: Why Bill C-11 Leaves the Door Open to CRTC Regulation of User Generated Content
Canadian Heritage Minister Pablo Rodriguez introduced the much-anticipated sequel to Bill C-10 yesterday. The minister and his department insisted that the new Bill C-11 addressed the concerns raised with Bill C-10 and that Canadians could be assured that regulating user generated content is off the table. Unfortunately, that simply isn’t the case. The new bill, now billed the Online Streaming Act, restores one exception but adds a new one, leaving the door open for CRTC regulation. Indeed, for all the talk that user generated content is out, the truth is that everything from podcasts to TikTok videos fit neatly into the new exception that gives the CRTC the power to regulate such content as a “program”.
The Law Bytes Podcast, Episode 113: The Year in Canadian Digital Law and Policy
The past year has been an incredibly active one for Canadian digital law and policy with legislative battles over Bill C-10, controversial consultations on online harms and copyright, important Supreme Court decisions, new digital taxes, and an emerging trade battle with the United States. For this final Law Bytes podcast of 2021, I go solo without a guest to talk about the most significant trends and developments in Canadian digital policy from the past year and to think a bit about what may lie ahead next year.
Should Have Seen This Coming: U.S. Raises Prospect of Retaliation Over Canada’s Digital Services Tax Plans
For the past two years, Canadian digital tax policy has been on a collision course with Canadian trade policy. The Liberal government committed in the 2019 election campaign to a digital services tax primarily designed to target large U.S. technology companies that generate significant revenues in Canada from online advertising and user data. The policy has been adopted in several other countries, repeatedly sparking a response from the U.S. that threatens to retaliate with tariffs on sensitive sectors of the economy. For example, after France announced plans for a similar tax, the U.S. threatened to levy billions in tariffs on French products.
As the trade threats escalate, the effort to strike an international agreement on the issue has gained increasing traction (my Law Bytes podcast last February with Professor Itai Grinberg provides a great backgrounder into the issue). After a preliminary deal was struck in October on an international approach, the U.S. dropped the tariff threat against several countries. Yet as efforts to finalize and implement the deal continue, Canadian Finance Minister Chrystia Freeland announced this week that new legislation will be introduced to create a Canadian digital services tax (this is distinct from digital sales taxes, which are currently in effect).
Canada Threatens to Delay Copyright Term Extension in Response to U.S. Electronic Vehicle Tax Credit Plan
Trade tensions between Canada and the U.S. have been rising in recent weeks with the U.S. Build Back Better Act proposing to create a tax credit for electronic vehicles that Canadian officials argue violates the Canada-U.S.-Mexico Agreement. The U.S. plan is said to be the equivalent of a 34 percent tariff on Canadian assembled electric vehicles. While trade disputes are not particularly noteworthy, the Canadian government response certainly is. Last week, Finance Minister Chrystia Freeland and International Trade Minister Mary Ng wrote to eight U.S. Senators with the following warning:
Beyond possible retaliatory actions, if the U.S. proceeds with the tax credit provisions as drafted, we would see this as a significant change in the balance of concessions agreed to in the USMCA. As such, we would consider the possible suspension of USMCA concessions of importance to the U.S. in return. Those concessions could include suspending USMCA dairy tariff-rate quotas and delaying the implementation of USMCA copyright changes.
Recent Posts
The Law Bytes Podcast, Episode 239: The Rise and Fall of Canada’s Digital Services Tax 
Canada’s DST Debacle a Case Study of Digital Strategy Trouble 
Canadian Government Caves on Digital Services Tax After Years of Dismissing the Risks of Trade Retaliation 
The Law Bytes Podcast, Episode 238: David Fraser on Why Bill C-2’s Lawful Access Powers May Put Canadians’ Digital Security At Risk 
Ignoring the Warning Signs: Why Did the Canadian Government Dismiss the Trade Risks of a Digital Services Tax?
