The Government may follow Australia in regulating negotiations between platforms and news businesses, with its experience over the past two years providing some helpful lessons
The future broadcasting system will see players contribute equitably: On 27 April 2023, the Online Streaming Act (Bill C-11) received Royal Assent in Canada. Having cleared the final hurdle in the Senate, Canada will therefore impose the same rules on online streaming services, including Netflix and Spotify, as it does on traditional broadcasters (e.g. the CBC). The bill is controversial because it will require streaming firms to make meaningful contributions to the creation, production and distribution of Canadian and Indigenous music, TV and other content. The act’s supporters claim that it will ensure consumers will have access to a greater variety and diversity of content, and help reinvestment in future generations of artists and creators. Nevertheless, opponents of the bill (such as TikTok and YouTube) argue that it could lead to over-regulation and government censorship, and that it is overly broad and lacking clarity.
The CRTC has the mandate to update Canada’s broadcasting framework: Bill C-11 represents the first major reform to the Broadcasting Act since 1991 – a time when dial-up internet was not yet widely available. It will enable the CRTC (Canada’s communications regulator) to evolve the country’s media policy framework, as well as give it powers over streaming platforms, which could face fines or other penalties if they fail to comply with the new laws. The CRTC has stressed that the bill only applies to streaming companies and that it has no intention of regulating creators of user-generated content. Now that it has cleared the legislative process, the Government will need to provide direction to the CRTC, which will be responsible for putting the act into effect. The regulator is expected then to launch multiple public consultations as it seeks stakeholder input and also aims to provide transparency and predictability on its implementation plans.
Tech firms may have to negotiate financial deals with online publishers: Canada is not the only country to enact local content rules for streaming services, with Australia recently announcing that quotas will be placed on Disney+, Prime Video and others by July 2024. Netflix noted at MWC23 that it is due to pay €1.5bn in European cultural levies over the next three years. The Online Streaming Act is, however, just one of three legislative projects within the Government’s digital agenda, which also includes the ongoing development of an online safety regime and the Online News Act (Bill C-18). The latter would require large digital platforms to engage in commercial negotiations with news businesses over their content. If it receives Royal Assent, the bill would establish a framework broadly similar to that created by the News Media and Digital Platforms Mandatory Bargaining Code in Australia, which has now been in place for two years. Though generally considered a success, Canadian policymakers could leverage Australia’s experience to help meet their goals of respect for journalistic independence, investment in domestic news outlets and fair and transparent bargaining between parties.
