Bill C-10, An act to amend the Broadcasting Act and to make related and consequential amendments to other acts

1. Chair – Scott Simms (external link)

2. Vice- chair – Alain Rayes (external link)

3. Vice-Chair – Martin Champoux

Political Affiliation: Bloc Québécois

Constituency: Drummond

Province/Territory: Quebec

A communications specialist, Martin Champoux has made a name for himself over a 30-year career in the Quebec media, notably at the helm of the culinary show Que-qui qui mijote? on TVA. Mr. Champoux has distinguished himself in the region as director of communications, marketing and development for the Village québécois d'antan. He was also involved in the organization of the Classic Soucy-UV Mutuelle, for the benefit of the Sainte-Croix / Heriot Foundation and the improvement of health care in the MRC of Drummond.

4. Liberal Members

4.1 Member Lyne Bessette (external link)

4.2 Member / Julie Dabrusin (external link)

4.3 Member Anthony Housefather (external link)

4.4 Member Marci Ien

Political Affiliation: Liberal

Constituency: Toronto-Centre

Province/Territory: Ontario

Biography not available

4.5 Member Tim Louis (external link)

5. Conservative Members

5.1  Member Scott Aitchison

Political Affiliation: Conservative

Constituency: Parry Sound—Muskoka

Province/Territory: Ontario

Scott Aitchison was born and raised in the riding of Parry Sound-Muskoka. In 1994, at the age of 21, Scott Aitchison became the youngest individual ever elected to Huntsville Town Council and Muskoka District Council. Scott has a passion for politics and serving his community with a focus on economic development, youth retention, job creation, and affordable housing.

Over the last decade Scott has chaired the Organizing Committee of the 2010 Ontario Youth Games and led a number of capital fundraising campaigns for the construction of Chrysalis Women’s Shelter, Transitional Housing, and the Algonquin Residential Hospice. Scott has served on the Board for the Huntsville Lake of Bays Chamber of Commerce in addition to chairing a number of other municipal and volunteer organizations.

In 2014, Scott was elected as the Mayor of Huntsville, a past host of the G8 Summit. In this role Scott has practiced fiscal responsibility by reducing debt, increasing reserves, and tripled spending on transportation infrastructure. Throughout his career he has created an extensive network of Federal, Provincial and Municipal contacts as well as business stakeholders in the riding.

5.2 Member Martin Shields

Political Affiliation: Conservative

Constituency: Bow River

Province/Territory: Alberta

Martin Shields has been involved in municipal governance since 2004, and he has served as the Mayor since 2007. Prior to his career in politics, Mr. Shields served as a teacher and school administrator for 30 years, and as a part-time University instructor for 20 years. He currently serves as the Director of Strathmore-Brooks Alberta Conservative Constituency Association and is a past President of the Medicine Hat Federal Conservative Constituency Association.

Martin currently volunteers in his community with a number of organizations including the Recreation for Life Foundation, Brooks Health Foundation and the Brooks and District Rotary Club. Martin also has a deep interest in municipal sustainability and is dedicated to the Bow River Basin Council, Alberta Water and Riparian Land Committee and Brooks Expo Board.

Martin has been living in Brooks with his family for 35 years and is committed to the success and vitality of his community. He is involved in organizations that do exactly that, as a board member of the Alberta Library Trustees Association, as the Vice-President of the Alberta Urban Municipalities Association, as Vice-Chair of the Shortgrass Regional Library System Board, as Vice Chair of the Palliser Regional Health Board, and as Vice-Chair of the Palliser Area Health Advisory Committee.

5.3 Member Kevin Waugh

Political Affiliation: Conservative

Constituency: Saskatoon—Grasswood

Province/Territory: Saskatchewan

Kevin Waugh was born in Saskatoon and has lived in the riding for most of his life. For nearly four decades, he has been an active community member of this city and enjoyed a wonderful career in broadcasting.

Prior to running for Federal Office in 2015, Kevin served as a trustee with the Saskatoon Board of Education and was on the Saskatchewan School Boards Association Executive.

Kevin has been a local supporter of many organizations and sat on many non-profit boards throughout the years.

He is the recipient of the Saskatchewan Centennial Medal for “long standing community involvement”. Kevin has helped many organizations over the years fundraise for childrens’ initiatives.

First elected in October 2015, Kevin was re-elected in 2019. He previously served as the Deputy Critic for Canadian Heritage and National Historic Sites and the Deputy Shadow Minister for Indigenous and Northern Affairs during the 42nd Parliament and currently serves as the Chair of the Conservative Party’s Saskatchewan Caucus.

Kevin is a strong voice for Saskatoon-Grasswood.

Kevin and his wife Ann have 2 children and one grandchild.

6. NDP Member

6.1 Member Heather McPherson (external link)

Scope of Commission and Governor in Council (GIC) powers

1. Some say that the CRTC already has the power to regulate online providers and has chosen not to do so. Is this the case?
   • Under the Broadcasting Act,as it currently stands, the Commission can regulate either by way of issuing a licence or an exemption order;
   • The CRTC has put in place a Digital Media Exemption Order, which exempts all online broadcasters (Canadian and non-Canadian) from having to obtain a licence.
   • As the CRTC found in its Harnessing Change report, the current framework has reached the limits of its adaptability.
   • The Commission’s powers to enforce its regulations, particularly when dealing with non-domestic online players are currently limited.
2. Should Bill C-10 contain provisions to ensure that online audio and audiovisual news content adheres to journalistic principles?
   • The CRTC will implement the legislation that is adopted by Parliament.
   • 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.
   • If adopted by Parliament, Bill C-10 will introduce wholesale changes to how and what the CRTC regulates. The CRTC will need to establish new regulatory frameworks for online broadcasters.
   • To prepare for this possibility, the CRTC is carefully reviewing all of the amendments introduced by Bill C-10 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.
3. Why does the CRTC need monetary penalties under the Broadcasting Act?
   • As stated in the CRTC’s submission to the Broadcasting and Telecommunications Legislative Review Panel, the CRTC’s current enforcement powers are inconsistent and procedurally complex.
   • 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 Broadcasting Act does not include any such regime, the CRTC has limited flexibility 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 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.
   • A monetary regime under the Broadcasting Act, consistent with a harmonized regime in the Telecommunications 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.
4. Are the penalty amounts proposed in Bill C-10 appropriate?
   • Given its experience with monetary penalties under Canada’s anti-spam legislation and the Telecommunications Act, the amounts proposed in Bill C-10 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 a number of years of experience in compliance and enforcement of the obligations set out in the Telecommunications Act and Canada 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 Commission 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.
5. Should Parliament be considering any changes to the CRTC Act?
   • Under the CRTC Act, the CRTC has a successful track record of monitoring and regulating broadcasters so they achieve the objectives of the Broadcasting Act.
   • Where change is needed, we believe, is in the Broadcasting Act. Bill C-10 proposes three key important changes:
     • It clarifies the CRTC’s jurisdiction regarding online broadcasters.
     • It proposes provisions that specifically address our ability to obtain data from online broadcasters.
     • It proposes to modernize the CRTC’s enforcement powers.
6. Are there any other recommendations from the Broadcasting and Telecommunications Legislative Review Panel that should have been included in Bill C-10? More broadly, is there anything missing from the legislation?
   • The Broadcasting and Telecommunications Legislative Review Panel was an independent, expert group that was given a specific mandate by the government.
   • The Panel provided its recommendations to the government, and it is up to the government to consider them.
   • We welcome Bill C-10’s proposed changes in three key areas:
     • It clarifies the CRTC’s jurisdiction regarding online broadcasters.
     • It proposes provisions that specifically address our ability to obtain data from online broadcasters.
     • It proposes to modernize the CRTC’s enforcement powers.
7. Bill C-10 proposes to make changes to the process for the Governor-in-Council to issue policy directions to the CRTC. How does the CRTC view these changes?
   • This relates to how Cabinet makes and issues directives to the CRTC and is outside the scope of our authority. We will follow all policy directions issued to us, as we have always done.

Commission prioritization

8. 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 to make 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 the government has issued its 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.
9. The CRTC has several proceedings underway that may be affected by this new legislation, namely the CBC’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?
   • The CRTC welcomes the government’s tabling of a Bill that addresses the changing digital broadcasting environment, provides for a more flexible approach to regulation and modernizes the CRTC’s enforcement powers.
   • Without knowledge of the final version of the new Bill, it is difficult to say what measures would need to be taken to align ongoing proceedings with the changes to the Broadcasting Act.
   • It would not be in the public interest to delay hearings indefinitely until such time as legislation is passed. That said, we are approaching each of these proceedings under the current Broadcasting Act, but paying attention to information and data which could inform changes should C-10 pass.
   • There are transitional provisions set out in Bill C-10 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-10, and would address these changes through that process, or if needed, through supplementary hearings.
10. When can we expect the new legislation to be implemented through CRTC regulations?
    • The Minister of Canadian Heritage has stated that the Governor-in-Council plans to issue a policy direction to the CRTC on particular considerations and priorities that should be taken into account when implementing the changes to the Act, as well as to provide a time frame.
    • The CRTC will respect the requirements of the Order in Council.
    • We will launch public proceedings to seek input from interested parties and, based on the evidence on the public record, establish frameworks to achieve the policy objectives set out in the Act.

Matters of content

11. Our committee is studying whether Bill C-10 should include an updated definition of Canadian content. What are the CRTC’s views on this?
    • 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 institutions who adapt them to their needs and to the public policy priorities of the day, whether they are supporting audio, audio-visual, 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 has the ability to determine what is or is not a Canadian program. This allows the CRTC the flexibility to make adjustments, if necessary, to adapt 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 make adjustments in light of 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.
    • If Parliament decides to implement a definition of what constitutes Canadian content, the CRTC would adjust its policies and processes accordingly.
12. In the CRTC’s view, should Bill C-10 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 Commission 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.
13. The Bill supports the representation of diversity, including regional and a cross-section of interests from across the country. How will the CRTC provide opportunities for such diverse elements of Canadian society?
    • 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 audio-visual 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), and
      • 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.
14. The Bill leaves out details of how online digital platforms will be contributing to Canadian content. How will contributions be calculated and dispersed? Will the CRTC be applying additional conditions or prioritized criteria to the Canada Media Fund?
    • 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.
    • Over the years, the CRTC has adapted its frameworks to the changing nature of the broadcasting system, the changing needs of creators and the changing interests of Canadians.
    • In 2019, these frameworks were responsible for $2.9 billion in contributions from TV broadcasters and television service providers toward the creation of Canadian programming, as well as $46 million contributed by radio broadcasters.
    • We would encourage Parliament to establish the public-policy objectives it wishes for the Canadian broadcasting system, and to give the CRTC the flexibility to determine how best to achieve the objectives, much as it does under the current Broadcasting Act.
    • [If asked to respond to the Minister of Canadian Heritage’s statements regarding the addition of a potential $800+ million in new contributions from online broadcasting services] It is the Minister’s prerogative to try to anticipate the impact of the proposed Bill. As an independent regulatory tribunal that may be charged with making determinations in this regard in the future, it would be inappropriate for us to estimate what specific contributions might be made by any services under an amended Act, for at least the following reasons:
      • As always, any matter of significant public interest, such as the contributions by new players in the Canadian broadcasting system, would be subject to a public process where Canadians could weigh in. The CRTC would take all evidence into account when making its decision. However, in advance of such a public process it would not be appropriate for us to suggest what our final views or decisions might be.
      • In addition, the contributions that are required of traditional broadcasting services are established based on the information we receive from these undertakings in regard to their operations in Canada. At this time, we only have estimates as to the actual numbers of Canadians using the various online services or the revenues each of these services generate in Canada. Unless the CRTC is given clear statutory authority to collect such information, as is proposed in Bill C-10, it would not be appropriate for us to estimate what an appropriate level of contribution might be.
15. The CRTC has been deregulating the broadcasting system. Why should Parliament not put specific benchmarks for certain types of content in the Act?
    • While specific benchmarks may be appropriate today, they may not be appropriate in the future. We would lose the flexibility to adapt to changing circumstances and would require Parliament to review and modify the Act.
    • As I’m sure you’re aware, the Act has not been reviewed since 1991. Despite the good will of Parliamentarians, there would be a risk that the broadcasting system would have to live with out-of-date benchmarks for years – if not decades.
    • In our view, the best approach would be for Parliamentarians to set the overarching policy objectives for the broadcasting system. The Governor-in-Council can always issue a policy direction if it wants the CRTC to modify its approach.
    • We believe the CRTC needs to be nimble, innovative and capable of rapidly adapting to change. The tools we develop for the future must assume that unforeseen changes will be the norm and must be flexible enough to continuously adapt along with them.
    • I would also point out that in recent years, the CRTC has set additional regulations for the French-language market.
    • For example, we now require the large ownership groups to contribute 75% of their Canadian programming expenditures toward original French-language content.
    • Also, the Act currently states that the CRTC’s regulatory frameworks should be adaptable to change, should not inhibit the development of technology and should be sensitive to the administrative burden that they may create.
16. 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 2019 TV broadcasters and television service providers contributed $2.9 billion toward the creation of Canadian programming, and radio broadcasters contributed $46 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.
    • 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.
17. 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.
18. 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.
    • If adopted by Parliament, Bill C-10 will introduce wholesale changes to how and what the CRTC regulates. The CRTC will need to adapt its regulatory frameworks, most notably to address discoverability.
    • To prepare for this possibility, the CRTC is carefully reviewing all of the amendments introduced by Bill C-10 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.
19. Will the CRTC regulate online adult content? If so, would this regulation pertain to user-generated content?
    • The Minister of Canadian Heritage has indicated that he intends to introduce new legislation regarding online adult content. We have no knowledge of what this legislation may entail.
    • The CRTC currently regulates adult content in the traditional broadcasting system. First and foremost, broadcasters may not broadcast anything that contravenes the law and the Criminal Code applies to many activities that would be illegal in the context of the production and dissemination of that content.
    • Broadcasters are therefore prohibited from broadcasting anything that contravenes the Criminal Code.
    • Broadcasters are also held to a number of codes, including the Equitable Portrayal Code and many, particularly on-demand services such as those provided by cable companies, are required to have developed internal practices and codes that relate to the provision of adult content.
    • 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 do not cover user-generated content.
    • If Parliament expands the Commission’s regulatory purview in relation to this content, any regulatory framework would be developed as a part of a public consultation with a view to reaching a decision that meets the intent of Parliament.

Impact on online content producers

20. How does the CRTC view non-Canadian companies financing Canadian content? What impact will this have on the type of content that is financed?
    • Canada has a strong system that supports the funding of audio and audiovisual content, which includes the Canada Music Fund (which supports the activities of FACTOR, MUSICACTION) and the Canada Media Fund.
    • Broadcasters also contribute to various funds like Radio Starmakers/Fonds Radiostar, the Community Radio Fund of Canada and other discretionary funds.
    • Federal and provincial governments have also put in place several tax credits that support the creation of audiovisual content.
    • The CRTC has been enabled by Parliament to further contribute to that funding system by requiring expenditures by Canadian broadcasters to the funding, licensing, promotion and dissemination of that content.
    • In 2019, the CRTC was also responsible for $2.9 billion in contributions from TV broadcasters and television service providers toward the creation of Canadian programming, as well as $46 million contributed by radio broadcasters.
    • Foreign investment in content has increased year over year and the Canadian Media Producers Association’s Profile (produced in partnership with the Canadian Audio-Visual Certification Office) estimates that this has increased by 4.9% year over year from 2018-2019.
    • Greater direct contributions to the Canadian content production system can only serve to help these investments and results.
21. What is the CRTC doing to help traditional TV and radio stations whose revenues have suffered during the COVID-19 pandemic?
    • The CRTC currently has an open proceeding examining the possibility of granting broadcasters additional flexibility as a result of the pandemic.
    • The federal government has also acted to support broadcasters by waiving their Part 1 licence fees and remitting their Part 2 licence fees if they meet certain criteria.
    • The CRTC is continuing to closely monitor the situation and it appears that advertising on traditional TV and radio improved towards the end of 2020.
22. Will the CRTC exempt smaller online content providers from its regulation to foster innovation?
    • If adopted by Parliament, Bill C-10 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 all of the amendments introduced by Bill C-10 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.
23. 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-10?
    • The CRTC is unable to comment on the government’s taxation policies. Please address your question to the Department of Finance.
24. The Department of Canadian Heritage has projected anywhere from $830 million to $1 billion in additional investments from online platforms. Can the CRTC confirm this amount?
    • It is the Minister’s prerogative to try to anticipate the impact of the proposed Bill. As an independent regulatory tribunal that may be charged with making determinations in this regard in the future, it would be inappropriate for us to estimate what specific contributions might be made by any services under an amended Act, for at least the following reasons:
    • As always, any matter of significant public interest, such as the contributions by new players in the Canadian broadcasting system, would be subject to a public process where Canadians could weigh in. The CRTC would take all evidence into account when making its decision. However, in advance of such a public process it would not be appropriate for us to suggest what our final views or decisions might be.
    • In addition, the contributions that are required of traditional broadcasting services are established based on the information we receive from these undertakings in regard to their operations in Canada. At this time, we only have estimates as to the actual numbers of Canadians using the various online services or the revenues each of these services generate in Canada. Unless the CRTC is given clear statutory authority to collect such information, as is proposed in Bill C-10, it would not be appropriate for us to estimate what an appropriate level of contribution might be.
25. 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 signaled 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-10, the CRTC will react accordingly and in line with the intent of Parliament.
26. Is there a Canadian content production crisis at the moment?
    • According to the latest data, the actions taken by governments, private businesses and the CRTC have contributed to the creation and support of $3.22 billion in Canadian film and television content, 739 Canadian television series, 119 theatrical feature films and significant employment opportunities.
    • The Commission is concerned with ensuring that high-quality and relevant Canadian content is created, distributed and discoverable. Whether or not one considers there to be a production “crisis,” the Commission will continue to work to ensure that there is a variety of content in the broadcasting sector in Canada.

Impact on broadcasters

27. If this bill is adopted, will we find ourselves in a situation where domestic broadcasters must follow one set of rules and online content providers 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 towards meeting the policy objectives set out in the Broadcasting Act.
    • If Parliament decides to continue to permit the CRTC the flexibility to regulate in a manner that is readily adaptable to the realities under which different elements of the broadcasting system operates, all with a view to ensuring that the policy objectives continue to be met, it will continue to do so.
    • 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.
28. 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.
29. Bill C-10 is silent on the CBC∕SRC. Do you think that the mandate of the national public broadcaster needs to be reviewed?
    • The CRTC is currently considering the licence renewal of the CBC/SRC, as it is articulated in the Broadcasting Act.
    • The Commission takes no position on whether the mandate of the CBC/SRC should be included in current legislation.
    • If Parliament decides to change the mandate of the CBC/SRC, the CRTC will take appropriate steps to ensure it implements the revised mandate in a manner that is consistent with its powers.

Impact on service providers

30. 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-10 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.
31. Would CRTC regulations apply to streaming devices (e.g., Apple TV, Roku, etc.)?
    • While the CRTC does not regulate devices, we do regulates services provided through 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

32. 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 Commission is concerned with ensuring that high-quality and relevant Canadian content is created, distributed and discoverable. The Commission will continue to work to ensure that there is a variety of content in the broadcasting sector in Canada.
33. 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 providers, such as Bell, Corus, Netflix, or Amazon and Amazon Music, and the owner of the intellectual property, for example producers such as Shaftesbury, Sinking Ship, Attraction or YouTube. The CRTC does not intervene in these commercial negotiations.
    • The ability of a content provider to make available content within a certain geographical area will depend on the rights it has negotiated with the owner of the content.
    • Moreover, the rules will be set after a public process, and it would be premature to speculate on what the outcomes might be.

Impact on net neutrality

34. Some have suggested that Bill C-10 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

35. What is the CRTC’s view on the proposal to force Facebook to pay newspapers for their social media posts?
    • Social media posts do not currently fall within the meaning of broadcasting under the current Broadcasting Act. Moreover, under the Act, alphanumeric text does not fall within the definition of what constitutes programming.
    • To the extent that these activities are not considered within the CRTC’s current legislative framework, the CRTC does not have a view on this hypothetical proposal.
36. What content moderation practices will the CRTC impose to include 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 currently outlawed by the Criminal Code.
    • Currently, broadcasters in Canada are prevented, by regulation, from broadcasting anything that contravenes the law.
    • The CRTC is of the view that such prohibitions remain entirely appropriate.
37. How much does the CRTC spend on advertising on digital platforms like Facebook compared to newspapers and other traditional media?
    • The CRTC uses digital and traditional platforms to make Canadians aware of its proceedings and to encourage their participation. We don’t advertise in the traditional sense and run very few paid advertising campaigns. We do have a relatively small advertising budget, which we endeavour to use in a cost-effective way to reach Canadians where they are. In the last two fiscal years, we spent approximately $45,000 on advertising campaigns.

Matters of ownership

38. Should Bill C-10 be amended to maintain Canadian ownership in the broadcasting system?
    • In a Direction to the CRTCissued 25 years ago, the Government directed that the CRTC only issue licences to Canadians. Licences will continue to be administered by the CRTC should Bill C-10 become law.
    • It is our understanding that the policy direction will continue to apply should the Bill become law.
    • We believe that Bill C-10 proposes three key important changes:
      • It clarifies the CRTC’s jurisdiction regarding online broadcasters.
      • It proposes provisions that specifically address our ability to obtain data from online broadcasters.
      • It proposes to modernize the CRTC’s enforcement powers.
    • This will help us ensure that all who benefit from the Canadian system make appropriate contributions
39. Will the new legislation change the way the CRTC regulates foreign channels like Fox News, CCTC and RT?
    • Currently the CRTC does not licence non-Canadian services.
    • Foreign channels are authorized 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 stations as diverse as CNN, Al-Jazeera, Russia Today, Fox News and others.
    • If Parliament is of the view that the CRTC should have additional powers in this regard, the CRTC will act in accordance with any new legislative framework provided to it.