Bill C-11 has officially become law, forcing streaming companies ranging from Netflix (NFLX) to TikTok to pay for and promote Canadian content.
Known as the “Online Streaming Act,” Bill C-11 passed a final vote in the Senate on April 27 and has now received royal assent, making it the law in Canada.
The bill updates Canada’s Broadcasting Act to bring online streaming platforms under the regulatory authority of the Canadian Radio-television and Telecommunications Commission (CRTC).
It sets hefty financial penalties for digital platforms and streaming companies that don't make Canadian content available to users within Canada.
However, the new law does not apply to individuals who post regularly on social media.
The law applies to mostly foreign streaming companies and online platforms such as Facebook (META), Amazon (AMZN), and others, that distribute content to Canadians primarily online.
The CRTC has been directed to develop regulations based on Bill C-11 following consultations with the Canadian public.
The Liberal government of Prime Minister Justin Trudeau has said that platforms that make money from their commercial activities must reinvest in Canadian creators and content.
Federal Heritage Minister Pablo Rodriguez, who sponsored the legislation, said it requires streaming companies and others to contribute to Canadian culture.
YouTube, which is subject to the new law in Canada, said in a written statement that it is disappointed by the bill's passage.
The opposition Conservative Party in Parliament has called Bill C-11 “censorship” and ran an advertising campaign against the legislation called “Kill Bill C-11.”
This was the Liberal government’s second attempt to get an online streaming bill passed. The first version, introduced in 2020, did not pass before an election was called in 2021.
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