Online Broadcasting Regulation in Canada: What will the future hold?

By Alexandra A. Lewis on September 17, 2021

Bill C-10, Canada’s proposed legislation to regulate online broadcasters, dies on the Order Paper as Canada gets ready for a federal election

Online streaming services and Canadians alike have been closely following the progress of Bill C-10 (the “Bill”)¹, which sought to amend Canada’s Broadcasting Act² (the “Act”), principally by extending the Act to cover online broadcasters that deliver audio and audio-visual content. The Bill made headlines in May 2021 when a clause known as the social media exemption was removed, leading many to question whether Canada would soon be regulating user-generated content and social media platforms — for example, to require them to showcase Canadian content on their platforms. The Bill was passed in the House of Commons in June 2021 and thereafter moved on to the Senate. However, the Bill died on the Order Paper when Canada’s Parliament dissolved in mid-August prompting a snap election.  Canadians go to the polls on September 20, 2021. Depending on who wins the federal election, the Bill could be reintroduced and possibly passed, especially if the Liberals win a majority government (they introduced the Bill when they had a minority government). If reintroduced, however, the Bill will need to restart the full review cycle through Parliament.

About Bill C-10

The reforms to the Broadcasting Act were motivated by the Liberal Government’s promise to regulate so-called “web giants” in Canada to ensure they contribute to the creation, production, and distribution of Canadian stories and music – in both official languages as well as Indigenous languages.³ The Act, in its current form, provides a policy framework to ensure that Canada’s broadcasting system is sufficiently “Canadian”. It lays the foundation for e.g., ownership/control rules for traditional broadcasters, English and French broadcasting requirements, required financial contributions to the creation and presentation of Canadian programming, and Canadian programming requirements.  These requirements, most of which are imposed through regulations or orders under the Act, presently apply to traditional broadcasters but not to online broadcasters. At this time, online broadcasters are exempt pursuant to the Exemption order for digital media broadcasting undertakings⁴ issued by the CRTC, Canada’s telecommunications regulator. The Bill sought to change this by including “online undertakings” as a distinct class of broadcasting undertakings to be regulated under the Act.

While the Bill left most of the details to the CRTC to establish in regulations, it would have been fair to assume that, if the Bill had passed, the Act would likely have covered online streaming services offering music or television/movies and potentially the major social media platforms. Depending on the final text of the Bill and any regulations and orders, those online services might have been required to contribute a portion of their revenues to Canadian programming funds and/or make expenditures to support the Canadian broadcasting system. They might have also been required to showcase and promote the “discoverability” of Canadian content across their platforms, including within software apps, and potentially be required to register with the CRTC and disclose their revenues.

What’s next

While the Bill has died on the Order Paper due to Canada’s dissolution of Parliament, we could see this Bill resurface in some form after the upcoming election. Canada’s Broadcasting Act has not been overhauled since 1991, and for the most part, Canadians generally support a broadcasting policy that encourages Canadian programming and talent. That said, the Bill had sparked a heated debate in Parliament and in the media, especially when its scope was extended to potentially cover social media platforms. Critics argued that the Bill was unconstitutional and would have impeded on rights and freedoms of Canadians. If the Bill reappears, we may see more clarity on these issues and its scope.  

We will monitor this space and keep you informed after the election.