Appearance before the Senate Standing Committee on Transport and Communications

• The CRTC will work hard to implement the Bill which Parliament approves and which receives Royal Assent. Although the Commission made comments at Committees, which is appropriate, our role once a Bill is passed is the fulfill the role which Parliament has assigned to us.
• The CRTC has a strong track record of implementing effective policies and adapting its approaches over time to meet the evolving needs of Canadians and of the broadcasting system. The CRTC will continue to do so with the new Broadcasting Act regardless of the platform offering programming content.
• The CRTC will hold public consultations to ensure that a variety of perspectives – including those of Indigenous peoples, people with disabilities, people who identify as LGBTQ2+, Canadians from various racialized communities and those living in official language minority communities (OLMCs) – are taken into account in order to establish a regulatory framework to achieve the policy objectives set out in the new Act.
• Canadians and interested parties will have an opportunity to share their views and provide evidence on the public record.
• The CRTC will continue to oversee the broadcasting system in the public interest while the process to establish a new regulatory framework is underway.

Scope of CRTC and Governor in Council (GIC) powers

1. Does the CRTC have the expertise needed to regulate online streaming in Canada?
   • The CRTC has a strong track record of implementing effective policies and adapting its approaches over time to meet the evolving needs of Canadians and of the broadcasting system.
   • The CRTC has been actively developing its expertise and understanding of online broadcasting services since the late 1990s when it first examined how online services were impacting the broadcasting system. To date, the CRTC has taken a light-handed regulatory approach to these services as they have developed over the past 20 years. For instance, the CRTC has adopted exemption orders for digital media services and video-on-demand services that are offered over the Internet. They enable innovative broadcasting services like CBC Gem, tou.tv and Crave TV to reach Canadians while allowing the CRTC to monitor their effects on and contributions to the Canadian broadcasting system.
   • The CRTC also conducts research and collects data to understand online broadcasting services and their role in creating and providing content to Canadians. This is done in a variety of ways, like public consultations, engaging independent experts, and direct information-gathering. For instance, the CRTC has recently announced a new policy to conduct a new annual survey of digital media broadcasting services to assess their ongoing development in Canada. It also relaunched the Communications Market Reports (CMR) to release data to the public faster and in more frequent intervals. The CMR will evolve over time to address market shifts in the fast-paced evolution of the digital environment.
   • The CRTC is carefully reviewing all the amendments introduced in Bill C-11 with a view to holding public proceedings to expeditiously implement the changes included in Bill C-11, should it be adopted by Parliament.
2. Some say that the CRTC already has the power to regulate online providers and has chosen not to do so. Is this the case?
   • There is a difference between an act giving a regulator the authority over certain matters and an act giving the regulator the necessary regulatory tools to effectively regulate those various entities. This is the difference between “jurisdiction” and “powers”.
   • While online broadcasting services operating in Canada fall within the CRTC’s jurisdiction, the current powers at the CRTC’s disposal to effectively regulate online broadcasting services, in particular non-Canadian online broadcasting services, is limited in the current Broadcasting Act.
   • Under the current Broadcasting Act, the CRTC can regulate either by way of issuing a broadcasting licence or an exemption order. Most of the regulatory powers set out in the Act can only be exercised on licensed broadcasting services.
   • The CRTC found that it was appropriate to put in place an exemption order for digital media services, which exempts all online broadcasting services operating in Canada (Canadian and non-Canadian ones) from having to obtain a licence. There are certain basic requirements that these online broadcasting services must respect to operate under this exemption order.
   • Through the Direction to the CRTC (Ineligibility of Non-Canadians), the federal government has precluded the CRTC from issuing licences to non-Canadians. Yet, many online broadcasting services operating in Canada that Canadians seek out and use are non-Canadian. Consequently, the CRTC is currently limited to issuing exemption orders in respect of non-Canadian online broadcasting services that are operating in Canada.
   • Bill C-11 seeks to change that. It would give the CRTC new powers to issue certain types of orders or make certain types of regulations to deal with online broadcasting services, including non-Canadian ones.
   • However, these new regulatory powers apply in a narrower fashion to online undertakings and non-Canadian undertakings than they do on traditional, Canadian broadcasting services.
   • As an arm’s length, independent regulator, the CRTC will implement the revised Act and exercise its powers in a manner that the government has seen fit to include within the CRTC’s mandate and powers to exercise.
3. Will the CRTC’s framework to regulate digital content streamers comply with the Canadian Charter of Rights and Freedoms when it comes to freedom of expression?
   • From a constitutional perspective, the CRTC can only exercise its powers in a manner that is consistent with the Canadian Charter of Rights and Freedoms.
   • Furthermore, from a statutory perspective, the current Act, reinforced by section 10.1 of Bill C-11, requires that the CRTC exercise its regulatory powers in sections 9.1(1) and 10(1) in a manner that is consistent with the freedom of expression enjoyed by users of social media services.
   • We also have a solid track record to stand behind. Our decisions can be appealed before the Courts. Of the approximately 250 broadcasting decisions issued every year, none has ever been successfully challenged on the basis that they somehow infringed Canadians’ freedom of expression.
   • The CRTC is an administrative tribunal that regulates and supervises broadcasting and telecommunications in the public interest.
   • As an independent and arm’s-length regulatory body, the CRTC has a responsibility to implement legislation adopted by Parliament and to uphold the law, including the Charter of Rights and Freedoms.
   • The CRTC will hold public consultations to ensure that a variety of perspectives are taken into account in order to establish a regulatory framework to achieve the policy objectives set out in the new Act. Canadians and interested parties will have an opportunity to share their views and provide evidence on the public record.
   • The CRTC will continue to oversee the broadcasting system in the public interest while the process to establish a new regulatory framework is underway.
4. How will social media users be affected by Bill C-11 when it becomes law?
   • Users of social media create and transmit a significant amount of content on social media platforms. Bill C-11 does limit the CRTC’s ability to regulate content found on social media platforms.
   • First, Bill C-11 removes users of social media services from the Act.
   • Second, the content itself can be the subject of some regulatory oversight, but only in certain limited circumstances. For example, the content must generate revenues, be available on other platforms such as on television, and have an internationally assigned unique identifier for that content to be potentially subject to CRTC oversight.
   • How the CRTC might regulate is also limited. Ultimately, should the CRTC opt to put certain regulations put in place, those will have to be appropriate to achieve the broadcasting policy objectives set out in the Act.
   • As an arm’s length, independent regulator, the CRTC will implement the revised Act and exercise its powers in a manner that the government has seen fit to include within the CRTC’s mandate and powers to exercise.
   • Any future policies and decisions made by the CRTC in respect of social media platforms and the content made available on those platforms will be based on evidence, gathered as a result of public consultations, which are open to everyone.
5. Would digital creators be regulated under Bill C-11?
   • Digital creators could include individuals making content on a social media service like Facebook for other users to enjoy, artists creating music that is streamed on an online platform like Spotify, producers making content which is sold to an online service like Netflix to broadcast to its subscribers, or many other possibilities.
   • Just as creators, artists and producers are not regulated under the current Broadcasting Act, digital creators would not be regulated under a Broadcasting Act amended by Bill C-11.
6. Should Bill C-11 contain provisions to ensure that online audio and audiovisual news content adheres to journalistic principles?
   • The current Act already provides that the CRTC has to fulfill its mandate in a manner that is consistent with the journalistic, creative and programming independence enjoyed by broadcasters.
   • We would note that accurate, independent, and trustworthy news sources are essential for Canadians to be able to exercise their democratic rights.
   • The CRTC has traditionally supported these objectives through a co-regulatory approach with broadcasters and journalists through the implementation of various codes of conduct, such as the Equitable Portrayal Code and theJournalistic Independence Code.
   • The CRTC currently regulates standards of programs for broadcasters, including online broadcasters. However, that ability will not be extended to programs uploaded by users of social media services under Bill C-11.
   • As an arm’s length, independent regulator, the CRTC will implement the revised Act and exercise its powers in a manner that the government has seen fit to include within the CRTC’s mandate and powers to exercise.
   • Any future policies and decisions made by the CRTC in respect of social media platforms and the content made available on those platforms will be based on evidence, gathered because of public consultations, which are open to everyone.
7. Why does the CRTC need monetary penalties under the Broadcasting Act ?
   • The CRTC can impose monetary penalties to enforce provisions related to telemarketing and spam, as well as more generally under the Telecommunications Act. This power has proven a useful tool to promote compliance in the marketplace and, where necessary, to address certain situations of non-compliance.
   • To protect Canadians, the CRTC’s enforcement actions have resulted in payments of more than $1.3 million for violations of Canada’s Anti-Spam Legislation and over $9 million for violations of the telemarketing rules. We have also issued numerous citations, warning letters and notices of violations.
   • Given that the current Broadcasting Act does not include any such regime, the CRTC has limited ability to ensure compliance or address non-compliance in the broadcasting sector.
   • Our current tools include imposing conditions of licence, short-term licence renewals, and mandatory orders. These are not well suited to addressing instances of non-compliance in a timely and targeted manner.
   • More extreme measures such as the suspension or revocation of licences are of limited use and may, in some cases, be counter to the Act’s objectives of ensuring Canadians have access to, for example, a wide variety of Canadian content that reflects their needs and interests.
   • An administrative monetary penalty regime, under the new Broadcasting Act, would improve the CRTC’s ability to effectively fulfill its mandate and achieve the desired policy outcomes of any future legislation.
   • As it has done under the current iteration of the Broadcasting Act, the CRTC would use all of the tools it has at its disposal to ensure the compliance of any regulated entity with the requirements imposed upon them.
8. Are the penalty amounts proposed in Bill C-11 appropriate?
   • Given its experience with monetary penalties under Canada’s Anti-Spam Legislation and the Telecommunications Act, the amounts proposed in Bill C-11 appear to balance the need to promote compliance and, should it be necessary, to address instances of non-compliance.
   • While these amounts may appear high, these are maximum amounts. The CRTC has had several years of experience in compliance and enforcement of the obligations set out in the Telecommunications Act and Canada’s Anti-Spam Legislation. The amount of a specific monetary penalty is always established using the factors set out in legislation, as applied to the circumstances of a specific case.
   • Additionally, the payments are remitted to the Receiver General of Canada; they do not benefit the CRTC in any way. This is only about compliance.
   • That being said, we expect companies to be good corporate citizens who will want to respect their regulatory obligations.

CRTC prioritization

9. Does the CRTC have the necessary resources (human and financial) to implement the new legislation? Will other files need to be put on hold or postponed making room for the proceedings related to the new legislation?
   • The CRTC recognizes that the proposed changes to the Broadcasting Act are important and that the intended benefits for Canadians and the Canadian broadcasting system should not be understated.
   • The CRTC intends to devote the appropriate resources to achieve whatever Parliament and the government ask of it in relation to these changes.
   • The CRTC will be in a better position to assess the resources that will be required once the Bill has received Royal Assent and if the government has issued a policy direction.
   • In the interim, we are working to align available resources to ensure that we are ready to undertake whatever work Parliament assigns to us through legislative change.
   • We will continue to oversee the broadcasting system in the public interest while the process to establish new regulatory frameworks is underway.
10. Budget 2022 proposes to provide $8.5 million over two years, starting in 2022-23, to the Canadian Radio-television and Telecommunications Commission – what will it be used for?
    • These funds have nothing to do with Bill C-11. They are earmarked for Bill C‑ 18 which targets online communications platforms.
    • Accurate, diverse, and relevant news contributes to a thriving and functioning democracy in Canada. As reading habits change and people consume more content online, it is important that news media continue to be independent and reliable. For that to happen, news media businesses must be able to receive fair compensation when their content is shared online. The $8.5 million will be used to establish a new legislative and regulatory regime requiring digital platforms that generate revenues from the publication of news content to share a portion of their revenues with Canadian news outlets.
11. The CRTC has several proceedings underway that may be affected by this new legislation, namely the CBC/SRC’s licence renewals, the commercial radio policy review, and the co-development of a new Indigenous broadcasting policy. What will happen to those proceedings if the legislation comes into effect before they are completed?
    • There are transitional provisions set out in Bill C-11 that will ensure that many existing obligations made under the previous Act continue to be validly enacted under the new legislation. This will provide regulatory stability while the CRTC works through the changes to the Broadcasting Act.
    • We anticipate holding public hearings for aspects of C-11, and would address these changes through that process, or if needed, through supplementary proceedings.
12. When can we expect the new legislation to be implemented through CRTC regulations?
    • The CRTC recognizes that the proposed changes to the Broadcasting Act are important and that the intended benefits for Canadians and the Canadian broadcasting system should not be understated.
    • The CRTC intends to devote the appropriate resources to achieve whatever Parliament and the government ask of it in relation to these changes.
    • The CRTC will be in a better position to assess the resources that will be required once the Bill has received Royal Assent and if the government has issued a policy direction.
    • In the interim, we are working to align available resources to ensure that we are ready to undertake whatever work Parliament assigns to us through legislative change.
    • We will continue to oversee the broadcasting system in the public interest while the process to establish new regulatory frameworks is underway.

Matters of content

13. What are the CRTC’s views on the need to update the definition of Canadian content?
    • This is not only a CRTC issue; it is a much broader issue. The definitions aren’t just used by the CRTC, but also by a variety of funding sources at the Federal and Provincial levels, as well as non-government sources, who adapt them to their needs and to the public policy priorities of the day, whether they are supporting audio, audiovisual, film or news.
    • Current standards for Canadian content are based on criteria that have been around in some form or another for decades. The requirements are not defined in the Broadcasting Act.
    • Under the current Broadcasting Act, the CRTC can determine what is or is not a Canadian program. This allows the CRTC the flexibility to adjust, if necessary, to changing realities in the broadcasting system and to build a regulatory framework to help adapt to those changes.
    • If the definition is too specific in the Act, the CRTC may not have the flexibility to adjust considering changing circumstances and business models in the future.
    • The CRTC takes its responsibilities seriously with respect to ensuring that Canadian content meets the needs and interests of Canadians in all their diversity, while recognizing that these needs and interests may evolve over time.
    • The CRTC also takes seriously the need to ensure that the Canadian broadcasting system develops and delivers compelling, high-quality Canadian creative content, including content made by Indigenous peoples, OLMCs, racialized communities, persons living with a disability and persons who identify as LGBTQ
    • Under Bill C-11, the Governor in Council may make regulations prescribing matters that the Commission is required to consider for prescribing what constitutes a Canadian program. If Parliament decides to implement a definition of what constitutes Canadian content, the CRTC would adjust its policies and processes accordingly.
14. In the CRTC’s view, should Bill C-11 include specific measures to ensure that online content providers produce Indigenous and French-language content? What does the CRTC consider an “appropriate proportion” of content?
    • As the Canadian broadcasting system evolves and expands, so will the number of players that are able to contribute to important public-interest objectives. Currently, the Broadcasting Act does not include specific quota-based requirements for either French-language or Indigenous-language content.
    • The CRTC has nevertheless been successful at implementing requirements within the traditional broadcasting system that have served to support this content. For instance, there are currently over 150 Indigenous radio stations in major markets and in Indigenous communities across Canada. The CRTC also has long-standing requirements with respect to French-language vocal music on French-language radio stations and has supported the operations of APTN, which in turn is reflective of, and relevant to, Indigenous Peoples.
    • The CRTC has used its powers under section 9(1)(h) of the Act to ensure the provision of certain English and French-language services to official-language minority communities across the country, as well as content relevant to Indigenous audiences, through various television service providers.
    • For example, the CRTC has used this power to ensure the distribution of APTN and UNIS on the basic cable package to all subscribers.
    • The CRTC has also used its powers under section 10(1)(i) of the Act to ensure the monitoring and reporting of the conduct and management of all radio stations, including English and French-language stations serving official-language minority communities across the country.
    • The CRTC will continue to evolve its approach based on the expressed needs of Canadians and Canada’s diversity, as well as the evolving composition of the Canadian broadcasting system while ensuring fair competition and innovation.
    • As with all areas of significant public concern, the CRTC is prepared to hold public consultations on these matters to ensure that a variety of perspectives are taken into account to determine what is or is not an appropriate proportion of content.
    • We are already undertaking the co-development of a new Indigenous broadcasting policy and have completed a set of engagement sessions across Canada. Public consultations will be part of the next phase of the proceeding.
15. The Bill supports diversity and inclusion amongst all sectors of Canadian society. How does the CRTC intend to ensure that Canadian content is reflective of Canadian society, including OLMCs, women, racialized Canadians, LGBTQ2 groups and Indigenous communities?
    • The CRTC takes its responsibilities under the Broadcasting Act seriously and aims to regulate and supervise the broadcasting system to ensure that its policy objectives are fulfilled.
    • CRTC policies have led to the creation of several funds that help to support the production of diverse Canadian content. This includes:
      • the funding of children’s programming by facilitating contributions to the Shaw Rocket Fund;
      • community programming through support for the Community Radio Fund of Canada;
      • local programming through regulatory actions that financially support local reflection and programming (including spoken-word content, information and news) and local community television programming;
      • measures to support the creation of content for Indigenous peoples through various broadcasting undertakings and audio and audiovisual platforms;
      • support for Francophones outside of Quebec by licensing UNIS and adding it to the basic television service;
      • support for the LGBTQ2+ community by licensing OUTtv;
      • the licensing of ethnic TV and commercial, non-commercial, specialty and other radio services (such as satellite, pay and audio services);
      • many other initiatives that support the creation of diverse content and support for those diverse creators.
    • The CRTC also imposes requirements on radio and local television and services across the country to ensure that those services are relevant to and reflect Canadians living in those areas.
    • The CRTC’s has a strong track record of implementing effective policies and adapting its approaches over time to meet the evolving needs of Canadians and of the broadcasting system. The CRTC will continue to do so if the policy objectives in the Broadcasting Act change and evolve as well.
16. The Bill leaves out details of how online digital platforms will be contributing to Canadian content. How will contributions be calculated and dispersed?
    • The current Broadcasting Act does not specify the manner in which traditional players in the Canadian broadcasting system must contribute financially or otherwise to meeting the policy objectives contained therein.
    • The CRTC has the flexibility to determine how best to achieve the Act ’s objectives and has put in place the appropriate regulatory frameworks. Any contributions would be subject to public proceedings.
17. The proposed legislation is asking us to put a lot of trust in the CRTC to set the rules for the digital environment and to get it right, but the last time you renewed the licences of the large TV groups you were directed to change your decision. What assurances can you give us that we should leave the details to the CRTC?
    • The CRTC has operated as an arms length quasi-judicial tribunal with oversight over broadcasting related matters since 1968.
    • The CRTC has had a successful track record of monitoring and regulating broadcasters, so they achieve the objectives of the Broadcasting Act.
    • Canadians have access to a wide variety of radio and television services, including many Indigenous and ethnic services.
    • Further to the CRTC’s regulatory framework, in 2020 TV broadcasters and television service providers contributed $2.6 billion toward the creation of Canadian programming, and radio broadcasters contributed $31 million to support Canadian artists and content creators.
    • Under the Broadcasting Act, the CRTC may be held to account to the public at large and to the government by way of the Governor-in-Council. CRTC decisions are also appealable before the Courts.
    • In the last 30 years, the CRTC has issued thousands of broadcasting decisions. The Governor-in-Council has only referred 10 matters back to the CRTC for reconsideration.
18. What has the CRTC done to ensure Indigenous views are more prominent in the broadcasting system? What will it do to meet the new objectives?
    • The place of Indigenous Peoples in the Canadian broadcasting system is and always has been important.
    • The CRTC has used its powers under section 9(1)(h) of the current Broadcasting Act to ensure that APTN is distributed across the country and receives a per-subscriber wholesale rate that enables it to provide its valuable service in a viable fashion.
    • Additionally, there are currently over 150 Indigenous radio stations in major markets, and in Indigenous communities across Canada. There are also several Indigenous radio stations in small and remote communities across Canada.
    • In 2019 the CRTC launched its co-development of a new Indigenous Broadcasting Policy to help better understand the broadcasting needs of Indigenous Peoples both now and in the future.
19. Has the CRTC conducted any studies to determine how easy or difficult it is to find content online today? How does it plan to address discoverability under the new legislation?
    • Canadians are creating world-class content, but its success depends on its distribution and the ability of audiences in Canada and abroad to find it.
    • The CRTC has been actively researching and monitoring online services for many years. In all of our research, it is abundantly clear that discoverability is the key determinant for success in the online world. Unsurprisingly, in order to be successful, by any measure, content needs to be findable by its audience.
    • Numerous Canadian and Indigenous creators, artists and producers have already had important successes in bringing their content to a wide Canadian and even global audience. However, many others struggle to find any audience at all.
    • There are many factors that can lead to content being discovered and it will be important for the CRTC to take all of those factors into consideration, within the boundaries of the legislation, to ensure that Canadian and Indigenous content is more easily discoverable by Canadian and global audiences.
20. Will the CRTC regulate online adult content? If so, would this regulation pertain to user-generated content?
    • Currently, broadcasters in Canada are prevented, by regulation, from broadcasting anything that contravenes the law. Therefore, to the extent that the production and dissemination of certain adult content would constitute an offence under the Criminal Code, or otherwise be illegal, it may not be broadcast.
    • The CRTC currently has in place requirements that ensure that adult content is not readily available and can only be accessed by adults who request it. Broadcasters also take proactive steps to limit the inappropriate access of this content, through, for example parental controls to the extent that online platforms are broadcasting, similar protections would be considered by the Commission, after an open and transparent proceeding on the matter.
    • Under Bill C-11, as currently proposed, Parliament will decide what types of services should or should not be captured in any changes made to the current legislation. Currently, the proposed amendments that apply to program standards do not cover user-uploaded content on social media.

Impact on online content producers

21. Will the CRTC exempt smaller online content providers from its regulation to foster innovation?
    • If adopted by Parliament, Bill C-11 will introduce wholesale changes to how and what the CRTC regulates. The CRTC will need to adapt its regulatory frameworks, and as part of this review we may need to consider whether to exempt online content providers.
    • To prepare for this possibility, the CRTC is carefully reviewing Bill C-11 with a view to establishing a series of public proceedings over the next two years to implement these changes in a coordinated and methodical manner. The CRTC has stated that it believes that requirements should be commensurate with the ability of the regulated entity to contribute.
    • The CRTC will act in accordance with whatever flexibility Parliament sees fit to grant in order to implement any changes that the Bill will make to the Broadcasting Act .
22. Does the CRTC believe that ensuring entities such as Netflix and Spotify collect and remit the GST or HST should be included in Bill C-11?
    • The CRTC is unable to comment on the government’s taxation policies. Please address your question to the Department of Finance.
23. What are the proposed incentive-based measures the CRTC is planning to put in place to ensure an even playing field with traditional Canadian broadcasters?
    • Any regulatory framework with respect to large online players and how the broadcasting system may evolve with their inclusion will be a matter of a future public consultation.
    • As a result of their inclusion, the rules for traditional and other domestic players may change.
    • The government has clearly signalled that it is interested in the use of incentives as a part of any suite of regulatory tools that the CRTC could use to oversee the Canadian broadcasting system.
    • If an Order in Council is issued following the Royal Assent of Bill C-11, the CRTC will react accordingly and in line with the intent of Parliament.
24. The CRTC will have some pretty broad powers to get information from online players. Can we trust the CRTC with that sensitive commercial information? Who can they share that information with?
    • While Bill C-11 gives the CRTC powers to obtain information from online players, it also includes new provisions to protect confidential information. If a party designates information as confidential, certain processes and prohibitions will be triggered. Bill C-11 contains a strict prohibition against harmful disclosure of information that is determined to be confidential. In addition, if an interested party requests disclosure of the information, the CRTC must conduct a process to determine whether any disclosure is required in the public interest.
    • The CRTC has extensive experience with protecting confidential information as it has the same provisions under the Telecommunications Act. Under that Act, the CRTC regularly obtains and protects highly confidential financial, commercial and ownership information from carriers. Consequently, the CRTC has detailed practices and procedures in place to ensure that all confidential information is protected.
25. Under Bill C-11, would the CRTC have the power to remove disinformation online?
    • First, it is important to emphasize that the CRTC’s decisions are already and will continue to be made in accordance with the right to freedom of expression, and other rights and freedoms, as guaranteed in the Canadian Charter of Rights and Freedoms. Furthermore, under Bill C-11, the CRTC is explicitly required to make orders and regulations in a manner that is consistent with the freedom of expression enjoyed by users of social media services that are provided by online undertakings.
    • Under Bill C-11, the CRTC will have the ability to issue orders that apply to online undertakings, including foreign undertakings providing service in Canada, and that are appropriate for the implementation of the broadcasting policy set out in the Act. In addition, its powers regarding the carriage of foreign programming services by cable companies and other distribution undertakings are in substance similar to its current powers.

Impact on broadcasters

26. If this bill is adopted, will we find ourselves in a situation where traditional broadcasters must follow one set of rules and online broadcasters follow another? Would such a situation be problematic?
    • The CRTC has publicly stated its view that requirements on the various players in the broadcasting system should be equitable and tailored to what each regulated entity can reasonably contribute toward meeting the policy objectives set out in the Broadcasting Act.
    • The specific requirements that could be imposed on specific elements of the broadcasting system, whether traditional players or online broadcasters, would be a matter of significant public interest and would only be done further to meaningful public consultation.
27. There is no mechanism to support local broadcasters in this bill. What is the CRTC doing to ensure radio and TV newsrooms are not forced to close?
    • The CRTC has a history of taking positive measures to facilitate support for the creation and broadcast of local, regional and national news and information.
    • When they apply for a licence, commercial radio stations must propose how much local programming (including local news and information) they intend to produce. And when their licences are renewed, they are routinely asked about their plans for the broadcast of local news and information.
    • Large vertically integrated broadcasters have both spending and exhibition requirements with respect to local news. They also benefit from the ability to transfer funds from their cable and satellite operations to help cover the costs of their news programming.
    • Smaller television broadcasters benefit from the approximately $20-million Independent Local News Fund which is funded by larger cable and satellite companies like Bell, Telus, Rogers and Shaw.
    • Local community radio stations benefit from ongoing support for their activities through the Community Radio Fund of Canada, which in turn is funded through regulatory requirements imposed by the CRTC mostly coming from large commercial radio stations.
    • Community television services continue to benefit from more than $100 million per year spent by television providers (cable and IPTV) to produce locally relevant and reflective programming.
28. Bill C-11 is silent on the CBC∕SRC. Do you think that the mandate of the national public broadcaster needs to be reviewed?
    • It is up to the Government and Parliament whether it chooses to review the CBC/SRC mandate. As a regulator, it would be inappropriate for us to weigh in on that question.

Impact on service providers

29. In its report titled Harnessing Change: The Future of Programming Distribution in Canada, the CRTC states that ISPs should also contribute to Canadian content. Does the CRTC still think that ISPs should make contributions?
    • The CRTC recognizes that there are social and cultural responsibilities associated with operating within the purview of the Broadcasting Act.
    • The recommendations in Harnessing Change were based on the CRTC’s observations on the state of the Canadian broadcasting system at the time of the release of that report.
    • The recommendations were to be viewed as possible options that could be considered as the government was thinking through possible legislative changes.
    • The outcome we identified was the need for sustainable funding to support Canadian television content. Bill C-11 seeks to address this through another means.
    • It is up to Government to propose legislative changes and Parliament to decide whether to adopt or modify proposed legislation.
    • The CRTC will implement the changes made to its legislative framework in a manner consistent with Parliament’s intent.
30. Would CRTC regulations apply to streaming devices (e.g., Apple TV, Roku, etc.)?
    • While the CRTC does not regulate devices, we do regulate the broadcasting that occurs on these various devices.
    • The CRTC will adapt its regulatory framework as a consequence of any amendments made by Parliament to the Broadcasting Act.
    • The CRTC uses the tools provided to it, including the use of regulations, in a manner that is appropriate to their purpose.

Impact on Canadians

31. Can we expect that the price Canadians pay for their non-Canadian online services (e.g. Netflix, Spotify) will go up as a result of this legislation?
    • Canadian and non-Canadian service providers alike are responsible for setting the retail prices paid by consumers. Their prices take into account a number of considerations, including the cost of producing and acquiring content, marketing, distribution, investments in technology, prices charged by competitors, etc.
    • The CRTC is concerned with ensuring that high-quality and relevant Canadian content is created, distributed and discoverable. The CRTC will continue to work to ensure that there is a variety of content in the broadcasting sector in Canada.
32. Will Canadians lose access to foreign content as a result of this legislation, for instance if non-Canadian services decide to remove non-Canadian content to comply with the rules?
    • The rights to content are negotiated between a content provider, such as Bell, Corus, Netflix, or Amazon and Amazon Music, and the owners of the intellectual property, for example producers such as Shaftesbury, Sinking Ship or Attraction. These are matters of copyright and CRTC does not intervene in these commercial negotiations.
    • The ability of a content provider to make content available on certain platforms and within a certain geographical area will depend on the rights it has negotiated with the owner of the content.
    • The CRTC’s objective has always been to ensure that Canadians have access to as broad of content from around the world, while ensuring Canadian producers are supported and have opportunities to showcase their work as well.
    • Moreover, any rules that the CRTC might decide would be appropriate would only be put in place after a public process, and it would be premature to speculate on what the outcomes might be.

Impact on net neutrality

33. Some have suggested that Bill C-11 goes against the principle of net neutrality. What are the CRTC’s views?
    • The CRTC believes that the free and open flow of information on the Internet is an important principle.
    • Net neutrality is a principle that relates to the flow of traffic over an ISP’s network and how that information reaches a consumer. Under that principle, particularly under the CRTC’s jurisdiction under the Telecommunications Act, the CRTC would be concerned if an ISP were to illegally block access to a content provider such as Netflix.
    • The provision of content by a provider such as Netflix and using regulation to ensure that the provision of content helps to ensure that the objectives of the Broadcasting Act are met is not a violation of net neutrality.

Impact on social media

34. What is the CRTC’s view on the proposal to force Facebook, also known as Bill C‑ 18, to pay newspapers for their social media posts?
    • Bill C-18 has been tabled in Parliament on April 5, 2022, and is now before the Senate for consideration.
    • The CRTC cannot comment any further at this time on the proposed bill.
35. What content moderation practices will the CRTC impose as safeguard measures to prevent harm, such as preventing hate speech?
    • Hate speech, specifically the communication of statements that incite hatred against any identifiable group, is an offence under the Criminal Code.
    • Currently, broadcasters in Canada are prevented, by regulation, from broadcasting anything that contravenes the law.
    • The CRTC can regulate standards of programs for broadcasters, including online broadcasters. However, that ability does not extend to programs uploaded by users of social media services.

Matters of ownership

36. Will the new legislation change the way the CRTC regulates foreign channels like Fox News, CCTC and RT?
    • The CRTC cannot license foreign channels.
    • The CRTC has authorized over 300 foreign channels for distribution by cable and satellite services in Canada in order to increase the diversity of voices and content in Canada, but they are not given broadcast licences. These include channels such as CNN, Al-Jazeera, Russia Today, Fox News and others.
    • Bill C-11 acknowledges that foreign broadcasters are part of the Canadian broadcasting system, and that all broadcasters operating in Canada should contribute toward the production of Canadian programs.
    • Bill C-11 also gives the CRTC more direct powers over foreign broadcasters operating in Canada.
    • The CRTC will act in accordance with any new legislative framework provided to it.

Public consultations

37. How will the CRTC ensure that all Canadians have the opportunity to voice their opinions during the public proceedings it will launch to establish a framework to regulate online streaming?
    • As an administrative tribunal, the CRTC has developed a long-standing expertise in public consultations since it has an obligation to meet the requirements of procedural fairness and natural justice. Public consultation also allows the CRTC to build a record on which to base its decisions.
    • The CRTC is cognizant that building a fulsome public record reflecting a variety of different views is key in establishing regulatory frameworks. It will therefore hold public consultations to ensure that a variety of perspectives are taken into account in order to establish a regulatory framework to achieve the policy objectives set out in the new Act. Canadians and interested parties will have an opportunity to share their views and provide evidence on the public record.
    • The CRTC is mindful of the ways in which a diversity of opinions can positively improve the public record. That’s why the CRTC is looking at new ways of consulting with Canadians to ensure it hears from the widest possible cross-section of stakeholders, including Indigenous peoples, people with disabilities, people who identify as LGBTQ2+, Canadians from various racialized communities and those living in official-language minority communities.
    • The CRTC is working to understand how best to consult people from those historically under-represented groups in our processes so that we can be assured—and the public can too—that our decisions take into account the broad spectrum of the public interest.
38. Bill C-11 contains a new requirement that the CRTC must consult with Canadians and review its regulations and orders every 7 years. Will this make the CRTC more accountable to Canadians?
    • The CRTC did not recommend this change. However, it will implement the Bill as passed by Parliament.
39. Has the CRTC been unresponsive to the needs and concerns of OLMCs and will Bill C-11’s new consultation requirement fix that?
    • The CRTC already has practices and procedures regarding addressing the needs of OLMCs, regularly meets with stakeholders (including broadcasters and industry members that serve OLMCs) and notifies them of files of interest to them to ensure that they can participate. Moreover, the CRTC like other federal institutions is required, under the Official Languages Act, to ensure that positive measures are taken to enhance the vitality of OLMCs and foster the recognition and use of both languages in Canadian society.
    • The CRTC’s policies and decisions are already crafted to ensure that they address the needs of OLMCs; consequently, the new consultation requirements are unlikely to have an impact on the CRTC’s decisions.