Canada Just Took a Major Stand for Net Neutrality

In Brief

•   Canada's administration has decided that internet service providers cannot exempt certain kinds of content, such as streaming video, from counting toward a user's data cap.

•   This protection of net neutrality currently exists in the US, but maybe not for much longer.

Canada Defending Net Neutrality

Net neutrality is the principle that internet service providers (ISPs) should treat all data that travels through their networks equally, without favoring any sites, services, or apps. In other words, the business that gets you online should not control where you go, what you do, or what you see. Without net neutrality rules, ISPs can keep users from visiting certain sites, provide slower speeds for streaming services that use more data like Hulu and Netflix, or redirect users from one site to a competing site that pays the ISP or is otherwise favored by it.

Without net neutrality regulations, larger, wealthier companies can pay ISPs to give their sites faster, more reliable access than those of their competitors — potentially passing the costs on to users. This deters small businesses and innovative start-ups.

In general, ISPs oppose net neutrality, probably because they stand to make more money without these regulations. In contrast, more than 100 tech companies — including Amazon, Google, Facebook, Microsoft, Twitter, Netflix, Vimeo, and Yahoo — support net neutrality regulations, citing their role in promoting innovation.

The Canadian Radio-television and Telecommunications Commission (CRTC), Canada’s telecommunications regulator, just ruled that Canadian ISPs cannot exempt certain kinds of content, such as streaming video, from counting toward a user’s data cap — a practice called “zero-rating.” The decision arose from a complaint against Videotron, a wireless carrier which operates mostly in Quebec.

In 2015, Videotron launched a promotional feature that allowed customers to stream music from services like Google Play Music and Spotify without it counting against a monthly data cap. This practice lets ISPs charge different prices based on the kinds of services or apps a person uses. This is similar to the sponsored data approach in which a company pays your ISP to exempt their service (and probably passes the cost on to you).

Supporters of differential pricing — including Videotron — say that the practice supports innovation and offers lower costs and more choice to consumers. However, consumer advocacy groups, such as the Electronic Frontier Foundation, disagree, arguing that these practices favor some kinds of internet activity over others in violation of net neutrality. The CRTC took the latter position in this case.

Net Neutrality Under Threat

Net neutrality remains under threat in the US. Net neutrality principles were passed in 2015, requiring American ISPs treat all Web traffic equally. This reform was major achievement of the Federal Communications Commission (FCC) during the time it was led by Tom Wheeler, who has since been replaced by Ajit Pai, a Trump appointee. The net neutrality regulations were widely praised by open-Internet advocates and consumer groups. Many see them as central to a continued level playing field in terms of access to the internet.

Although Pai has stated that he believes in a free and open internet, he has also stated in a press interview that the government should not prevent businesses from offering free data plans, like those that are part of zero-rating schemes. Regarding net neutrality regulations in particular, he stated in a press conference: “During the Trump administration, we will shift from playing defense at the FCC to going on the offense. We need to fire up the weed whacker and remove those rules that are holding back investment, innovation, and job creation.”