What Does a Regulated Internet Look Like?

The question sounds Orwellian. Maybe even dramatic. But it’s a question as old as the internet itself: Who controls what we see online—and today, on our social feeds? 

For most of us on Instagram, TikTok, YouTube, and Spotify, our feeds are curated by each platform’s respective algorithm, which is owned and operated by that platform as a private company.

But if you’re Canadian, that algorithmic string-pulling could soon be the responsibility of the government. Since it was introduced in February, Canada’s proposed bill C-11 has been circulating through Parliament. The so-called Online Streaming Act proposes that the Canadian Radio-television and Telecommunications Commission (CRTC) expand its regulatory reach from television and radio to all audiovisual content posted online. If it sounds vague and far-reaching, that’s because it is—which is part of why C-11 is so deeply controversial.

Why does it matter? Depending on your thoughts around the net neutrality movement of 2015, 2020’s The Social Dilemma, or George Orwell’s 1984—this could be a BFD for all creators and users. Let’s explore C-11’s potential impact on platforms, the future of digital media, and of course…creators.

What is C-11? Context matters here. Most countries have a regulator that oversees media including broadcast television and radio. In the U.S., it’s the relatively easy going FCC. In the EU and Canada, media regulators extend their reach to the type of content broadcasters air—for example, each have quotas for domestic and international programming and generally favor domestic content with tax breaks.

As C-11 stands today, any platform with video content in Canada is up for discretion—that could include anything from streaming platforms like Netflix and Amazon Prime Video to social platforms like YouTube and TikTok.

You’re reading a creator industry newsletter—chances are your mind jumped to “what about creators” when you read all audiovisual content posted online.

So what about creators? Truth is, the regulation of user-generated content (UGC) under a potential C-11 is up for debate. The bill says that no social media uploaders themselves would be regulated under the act, but the platforms that host their content (anything monetizable or commercial) could. 

That means YouTube would be regulated for videos posted by SportsNet, but “amateur” creator content would be left alone. The complication? The line between amateur and commercial has yet to be drawn.

YouTube is preparing for a fight regardless. The platform’s government affairs team, along with creators like J.J. McCullough, Aunty Skates, and Morghan Fortier, have testified against C-11 in Canadian Parliament and worked for ways to amend the bill so it excludes UGC. Other platforms including TikTok and Netflix are working to combat C-11 as well.

How might C-11 change the creator industry in Canada? C-11 would promote Canadian content to Canadian users on platforms like YouTube and TikTok, even if the viewers aren’t interested in it. For instance, a video on the best iPhone by Linus Tech Tips could be recommended over a video on the best iPhone for photos by MKHBD, even if the latter is more relevant to the user’s search.

For creators, that could potentially lead to lower click rates. Consider this:

• Canadians not interested in suggested content choose not to click on it or watch it all the way through.

• That could signal to platforms that the content isn’t popular with viewers…

• Which could lead the platforms’ algorithms to deprioritize Canadian content for viewers beyond its borders.

TikToker Tesher told the Regina Leader-Post that, had Bill C-11 been in place when he was first uploading music, his career never would have taken off. That’s because Tesher gained popularity outside of Canada first, connecting with audiences in India and America before taking off in his home country. 

“C-11 would limit that reach by requiring creators to prioritize government criteria for domestic distribution over making content optimized for global audiences,” Tesher said.

What’s more, Canadian creators like Anna McNulty and The Sorry Girls could be subject to “CanCon” rules, which are a set of standards (like ensuring a certain number of people on the production team are Canadian) current Canadian broadcasters are held to.

What about creators outside of Canada? Canada prioritizing domestic content over international content limits the ability for all creators to reach Canadian viewers. For reference, 8.3 million Canadians use TikTok. Close to 18 million Canadians use YouTube every month. And 11 million Canadians use Spotify.

Are there any pros to C-11? Some. Canada’s aim with this bill is to establish a fair, competitive environment for broadcasters and online media within its borders. Proponents see this bill as a means of holding foreign media platforms accountable to Canadians. C-11 supporters also see the bill as a way to encourage platforms to invest more heavily in Canadian projects.

What if legislation like this were in the works everywhere? In a way, it already is. 

If C-11 passes, Canada will be the first country in the Americas with government regulation of this magnitude affecting social feeds. But there are plenty of bills both stateside and in Europe that are looking to regulate platforms on the internet—just on different terms.

For instance, this summer the European Union passed the Digital Services Act (DSA), which requires online platforms like Google, Meta, and Twitter to share how their algorithms work, put processes in place to remove illegal content, and crack down on users who spread misinformation.

Last month in the U.S., Texas implemented a social media censorship law that bars platforms from banning users’ posts based on their political opinion.

But C-11 works differently by potentially targeting creators as much as platforms. If such a bill were to become law in other countries with large creator populations, it’s possible those creators would be virtually barred from finding an audience outside of their home country.

Looking ahead: The bill has recently made its way to the Senate, which is the final stage at which lawmakers can make amendments to the bill before it goes to a final vote.

Our Take

The creator industry and traditional media should be regulated differently because they are fundamentally different from one another. 

Consider scale alone. While traditional media operates on a smaller scale (there are a limited number of news media networks, primetime windows, and headline slots), social media offers infinite scale, with millions of accounts that can upload an unlimited amount of content. 

With that, the rules of one industry can’t be copied and pasted to another. As it exists today, C-11 aims to do that. And with it, the bill could potentially hamstring the legitimacy of the creator industry by insulating all manner of participants.

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