US Concerned Canada’s Pending Internet Regulation Bill Could ‘Discriminate’ Against American Businesses

United States Trade Representative Katherine Tai attends a rally in Detroit, Mich., on March 16, 2022. The Canadian Press/AP-Paul Sancya

U.S. Trade Representative Katherine Tai yesterday expressed concern to Canada’s International Trade Minister Mary Ng about the Liberal government’s pending internet regulation legislation for fear it could “discriminate” against American businesses if passed.

A U.S. government press release published yesterday said the pair met virtually on Nov. 30 to discuss Canada-U.S. economic cooperation and a number of other North American trade issues.

“Ambassador Tai expressed concern about Canada’s proposed unilateral digital service tax and pending legislation in the Canadian Parliament that could impact digital streaming services and online news sharing and discriminate against U.S. businesses,” the press release said.

Bill C-11, also known as the Online Streaming Act, passed the House of Commons in June and is currently undergoing Senate review.

The act would amend the Broadcasting Act to grant the Canadian Radio-television and Telecommunications Commission (CRTC) power to regulate the content available to Canadians through online streaming platforms like Netflix and YouTube. The bill’s stated objective is to promote Canadian content and culture for viewers within the country.

In Global Affairs Canada’s news release published yesterday on Ng’s meeting with Tai, the department did not specifically mention the latter’s expressed concern about Bill C-11.

The news release said the pair discussed “ongoing efforts to grow cross border trade, supporting inclusive job growth on both sides of the border,” and added that they also spoke about “a range of other issues relating to the Canada-US trading relationship.”

Streaming Giants

A number of the online streaming giants that would be affected by Bill C-11 have petitioned the Canadian government to amend the pending legislation as it now stands.

Executives from digital media companies wrote a letter in September to the Senate committee reviewing the legislation to seek extensive consideration of the bill.

“We urge this committee to pause,” wrote executives from the trade group Digital Media Association (DiMA), which represents online giants like YouTube, Amazon, Spotify, and Apple Music.

“Bill C-11 attempts to impose a system of regulation that is designed for traditional broadcasters onto streaming services,” DiMA wrote. “Imposing this antiquated system onto innovative streaming services in an era of consumer choice, where there are no gatekeepers to content as there are in the broadcasting context, is the wrong approach.”

Some members of the Standing Senate Committee on Transport and Communications earlier this week suggested amendments to Bill C-11 that would have limited the CRTC’s regulating scope under the legislation, but senators on the committee voted down the amendments 10-4.

Former CRTC commissioner and Epoch Times contributor Peter Menzies has warned that C-11 could “open the door to state-controlled media” and turn the CRTC into nothing more than a “political puppet.”

However, Heritage Minister Pablo Rodriguez has maintained that the bill is not meant to give the CRTC power to regulate individual social media creators and the content they generate, but only to compel digital platforms to promote Canadian content for viewers in the country.

“The bill is quite simple,” Rodriguez told the Senate committee on Nov. 22. “There is no obligation for the creator. The obligation is only for the platform, not the creator,” he added.

Andrew Chen contributed to this report.