A recently introduced legislation aimed at providing Canadian artists an advantage on the internet has caused displeasure among both influential individuals and major technology companies.

Despite their efforts, which included subway advertisements and TikTok posts, Silicon Valley failed to secure a win, with Ottawa taking the lead.

Following a convoluted path and a review process that lasted over two and a half years, the Canadian government has finally approved a new law mandating tech giants such as YouTube and TikTok to promote Canadian cultural content.

The legislation, known as Bill C-11, confers the Canadian Radio-television and Telecommunications Commission (CRTC) extensive powers to regulate these platforms similar to how they regulate radio and television.

The government has argued that the new law is crucial in preventing streaming giants from enjoying a free pass while supporting local artists.

Although the specific details of the regulations are yet to be determined, the bill has sparked a range of reactions, from TikTokers to highly regarded author Margaret Atwood.

YouTube expressed their discontent with the legislation, stating that it would deprive viewers and creators of control and instead give it to bureaucrats, and went as far as to take out ads on Toronto's subway system. Ms. Atwood, who isn't one to hold back her opinions, likened the law to Soviet-style censorship. Some Canadian influencers have even threatened to relocate to the United States.

As a global cultural powerhouse is situated just south of the Canadian border, Canadians have long struggled with ensuring that locally-produced content, such as music and television, doesn't get overshadowed by the glitz and glam of American competitors.

Since the 1970s, the Canadian Radio-television and Telecommunications Commission (CRTC) has been responsible for regulating broadcasters. This includes mandating quotas for the minimum amount of Canadian content a radio or television station must play, and obliging broadcasters to use at least 30% of their revenue on creating Canadian content.

"CanCon," the intricate system has helped raise the profile of some of the country's most significant cultural exports, such as musicians Celine Dion and Drake, and the sketch comedy show Kids in the Hall.

As the 21st century progressed, Canadians began relying on algorithms from platforms such as Spotify, YouTube, and TikTok to curate their content. These Silicon Valley imports were not required to adhere to the same Canadian content regulations, a gap that the government aims to close with Bill C-11.

"Online streaming has transformed the way we generate, uncover, and consume our culture, and it is essential that we adjust our system to match this," the government stated in a press release.

Since the beginning, significant tech platforms such as YouTube and TikTok have strongly opposed the law and have extensively lobbied the government.

YouTube expressed their disappointment with the legislation but pledged to continue supporting their creators and users through the subsequent stages of the process.

The main point of contention with Bill C-11 is a provision that mandates streamers, including social networks like YouTube and TikTok, to "clearly promote and recommend Canadian programming, in both official languages as well as in Indigenous languages".

According to experts, the law has the potential to establish a system where Canadian YouTubers would need to prove their Canadian identity to receive exposure.

This type of system is already in place for musicians, known as the "MAPL" system, which assigns points to a song based on factors such as the nationality of the singer, producer, and lyricist. The complexities of determining whether someone is "Canadian enough" have caused frustration for prominent Canadian singer Bryan Adams, who once complained that "You'd never hear Elton John being declared un-British."

The rise of algorithms has further complicated the matter. Every time a user interacts with content, such as by watching, liking, listening or sharing, the algorithm gains more information about their preferences. The more popular a piece of content becomes, the larger its audience grows.

The promotion of Canadian content would require platforms to alter their algorithms. This may seem like a positive development for Canadian influencers, but some fear that the process will be hindered by bureaucratic obstacles, and that algorithmic changes could have negative consequences.

Scott Benzie, executive director of Digital First Canada, an organization that advocates for Canadian content creators, has opposed the bill and received funding from YouTube. He believes that if Canadian content is forcefully displayed to uninterested viewers, it will be lost in the abyss.

According to him, the issue arises when content is suggested to users based on their location, rather than their interests.

Nathan Kennedy, a TikTok influencer who typically shares investment tips with his 520,000 followers, is among the many influencers who have expressed their opposition to the bill. "While I understand the intention of trying to preserve Canadian culture, I think their approach is more focused on traditional media," he said.

"It's like trying to fit a square peg into a round hole."

The broad scope of the law is one of the major concerns, with the government rejecting amendments that would exempt individual user content from regulation. The specific regulations are yet to be determined, and will be decided through public consultations by the CRTC in the coming months. Some, including the Conservative opposition, have criticized the bill, accusing it of legalizing censorship.

According to Michael Geist, a legal expert on internet law and privacy who is known for his criticism of the bill, the problem is not that it prevents people from expressing their opinions, but that it grants the government the power to decide who can access those opinions.

Geist has expressed concerns that the bill could result in excessive regulation by the CRTC, which has the authority to create whatever regulations it deems appropriate.

The Writers Guild of Canada, a group representing screenwriters, has commended the move of making streaming companies invest in Canadian productions and has received praise from others as well. Neal McDougall, the WGC Assistant Executive Director, stated that it is time for major streaming services to give back to the Canadian market in a statement.

Several other countries, including Australia and the UK, are also exploring the idea of regulating online content. For instance, Australia has announced a new cultural policy that includes quotas for locally produced content on streaming platforms, which is expected to be implemented in May. Similarly, the UK has considered introducing regulations for streaming services to safeguard "distinctly British" content. Morghan Fortier, who creates videos for preschoolers on YouTube, expressed concerns that if Canada prioritizes domestic content, other nations may follow suit, leading to reduced audience size overall. In addition to C-11, the Canadian government presented other bills aimed at regulating the internet.

Currently under consideration in the Senate is Bill C-18, which, if passed, would require tech firms such as Google to pay Canadian news outlets for displaying their content on their platforms. Similar to a law enacted in Australia in 2021, the Canadian government argues that the legislation is essential, alleging that tech behemoths profit from news at the expense of the organizations that produce it. However, Silicon Valley has staunchly opposed the proposal, with Google even temporarily halting news access to 4% of its Canadian users in protest.