IN-DEPTH: Bill C-11 Is Now Law—What Does It Do?

Logos for streaming services Netflix, Hulu, Disney Plus, and Sling TV on a remote control, in a file photo. (Jenny Kane/AP)

The Liberal government’s long-debated and controversial legislation aimed at regulating some aspects of online streaming and social media platforms has passed into law, more than a year since it was first introduced in the House of Commons in February 2022.

Bill C-11, which passed the Senate and received royal assent on April 27, amends the Broadcasting Act to bring platforms like Netflix, Spotify, and Facebook under the regulating authority of the Canadian Radio-television and Telecommunications Commission (CRTC).

The legislation gives the CRTC a mandate to ensure that these digital platforms contribute to new Canadian content standards or else face steep penalties.

The CRTC is described by the federal government as “an independent public authority that regulates and supervises, in the public interest, all aspects of the Canadian broadcasting system, as well as the telecommunications services providers and common carriers that come under federal jurisdiction.”

Now that Bill C-11 has received royal asset, the CRTC will receive a policy directive from the Liberal government. It will then be required to develop regulations in line with the legislation following consultations with the Canadian public.

The regulator said in a statement on April 27 that it will “establish a modernized regulatory framework where all players contribute equitably.”

“The broadcasting system will ensure that online streaming services make meaningful contributions to Canadian and Indigenous content,” it said.

“We will share our detailed plan and launch the first public consultations shortly. ... The views of all Canadians will be important at every step.”

As for regulating user-generated content—one of the most contentious aspects of the bill—the CRTC noted that it does not intend to do so.

User-Generated Content

Also called the Online Streaming Act, Bill C-11 has received heavy criticism from both the Opposition Conservatives and a number of private stakeholders. Even the U.S. government voiced concern that the legislation would “discriminate” against American businesses.

Heritage Minister Pablo Rodriguez, however, has contended all the while that the government’s aim in passing the legislation is to give Canadian artists and content creators a “level playing field” with American competitors and media outlets, which often achieve greater reach with Canadian audiences.

But most criticism of the legislation has stemmed from its wording, which leaves open the possibility of the CRTC requiring not just large digital platforms to contribute to content standards, but also individual content creators on sites like YouTube—whose revenue directly corresponds with the number of views it receives on uploaded videos.

While testifying before the House of Commons Standing Committee on Canadian Heritage in May 2022, CRTC chair Ian Scott said that Bill C-11 would grant the commission power to regulate user-generated content but that the commission would not use that power.

Before sending C-11 back to the House in February, senators voted in favour of proposing an amendment—along with over a dozen others—to exempt individual creators from the CRTC’s regulating authority under the legislation.

However, the Liberals rejected the amendment, with Rodriguez saying that it “would affect the Governor in Council’s ability to publicly consult on, and issue, a policy direction to the CRTC to appropriately scope the regulation of social media services with respect to their distribution of commercial programs.”

Concerns

The Senate said in its final motion when passing Bill C-11 that it would not insist on the House accepting its proposed amendments, but added that senators should take note of the government’s “public assurance that Bill C-11 will not apply to user-generated digital content.”

Some content creators and NGOs have raised alarm at the prospect of the CRTC regulating individuals rather than just digital platforms.

Others have said that regulation of certain platforms—such as YouTube and Spotify—necessarily means regulating the individual creators that make up the bulk of content available on the platforms.

A number of private companies have also said the government’s definition of Canadian content outlined in the legislation is too narrow.

Representatives from Spotfiy and Disney told the Senate communications committee in September 2022 that C-11’s definition of Canadian content is based more on the producers monetizing media rather than on the media creators themselves.

David Fares, Disney’s vice-president of global public policy, pointed out that films and TV shows with almost fully Canadian casts and production teams would still not be considered Canadian content under the legislation if an American producer, such as Disney, owned the intellectual property.

“On the flip side, there are situations where content will be identified as Canadian content even though it doesn’t tell a Canadian story,” Fares said. “It’s not produced in Canada. However, it meets the point system and the [intellectual property] is owned by a Canadian.”

Debate

Meanwhile, the legislation was a source of heated debate while it was still pending in the House of Commons.

Conservative Leader Pierre Poilievre called it a “censorship” bill and even held up a copy of George Orwell’s dystopian novel “Nineteen Eighty-Four” while speaking about the legislation during question period on March 30.

“The government will get to decide what is the right side of the debate and shut down everyone they consider to be on the wrong side,” he said.

During the same question period, Liberal Government House Leader Mark Holland said the purpose of C-11 is to make sure “big tech” pays its “fair share” to Canadian content creators and artists.

Poilievre said that “this bill doesn’t hurt big tech“ and that ”they'll still monopolize all of social media” regardless of whether or not Bill C-11 passes.

“Their platforms will still dominate,” he said. “It’s just that government bureaucrats will be able to manipulate the algorithms to shut down the voices of individual Canadians.”

The Department of Canadian Heritage said in a news release on April 27 that “Canadian stories and music” will now be more widely available than ever on digital platforms on the country’s internet networks.

“The law will give Canadians more opportunities to see themselves in what they watch and hear, under a new framework that will lead to a modern definition of Canadian Content that better reflects our country’s diversity,” the release said.

“Canadian artists, producers, creators, and our cultural industry can now count on a fair shot at success in the digital age.”

The Canadian Press contributed to this report.