It will allow for a complaints-based mechanism that can lead to an evaluation of whether the differential pricing is compliant with the law. Instead, the CRTC has established a framework that bears considerable similarity to its 2009 ITMP approach. Given all the drawbacks and limitations of using differential pricing practices as a way to support and promote Canadian programming, the Commission considers that any benefits to the Canadian broadcasting system would generally not be sufficient to justify the preference, discrimination, and/or disadvantage created by such practices. It also rejected calls from some cultural groups for preferences for Canadian content, noting: The CRTC rejects category style approaches advocated by some groups, concluding that they would not solve the concerns. Given the concerns and harms associated with zero rating, how to address the issue? While the Commission does not find differential pricing practices to have a direct negative impact on privacy per se, it is concerned that their adoption could discourage the use of VPNs and thus compromise the privacy and/or security of consumers. ![]() The Commission recognizes that VPNs are a legitimate tool to protect sensitive information, as recommended by security firms. The Commission would be concerned, however, if differential pricing practices affected the use of VPNs. Interestingly, the Commission also expresses support for the use of VPNs and is reluctant to embrace policies that might discourage their use. Moreover, given that differential pricing is typically offered for higher tier services, it finds that there was no evidence that it meaningfully increases access. The Commission considers that any short-term benefits of differential pricing practices would be greatly outweighed by the negative long-term impacts on consumer choice if ISPs were to act as gatekeepers of content through their use of such practices On consumer choice, the CRTC is mindful of what consumer groups and pro-net neutrality advocates have warned: The Commission also believes that differential pricing practices that favour particular services, technology, or content would generally negatively affect innovation. The Commission considers that competition in the retail Internet access services sector is best served, and the telecommunications policy objectives set out in the Act are best achieved, when ISPs compete and differentiate their services based on their networks and the attributes of the services on those networks, such as price, speed, volume, coverage, and the quality of their networks. For example, with respect to competition, the CRTC states: The impact is significant as the Commission notes that it can affect competition, innovation, consumer choice, access and affordability as well as privacy in a section of the decision that comprehensively makes the case for the harms associated with zero rating. The Commission concludes that it often does:ĭifferential pricing practices, generally speaking, result in (a) a preference toward certain subscribers over others, (b) a preference toward certain content providers over others, (c) a disadvantage to subscribers who are not eligible for, or interested in, a differential pricing practice offering, and (d) a disadvantage to content providers that are not eligible for, or included in, an offering. The ruling opens by examining whether differential pricing (of which zero rating is a form) raises concerns regarding preferences or disadvantages. Today’s decision largely completes the process by providing a framework for examining future zero rating or differential pricing cases (and rejecting Videotron’s music service plan in an accompanying decision). The Commission expressed concern that the service “may end up inhibiting the introduction and growth of other mobile TV services accessed over the Internet, which reduces innovation and consumer choice.” In January 2015, the CRTC released its decision in the case, siding with Klass. The issue expanded into zero rating in 2013 when Ben Klass, a graduate student in telecommunications, filed a complaint with the CRTC over Bell’s approach to its Mobile TV product. ![]() The rules restrict content blocking or slowdowns and require ISPs to disclose how they manage their networks. The Commission established its first net neutrality policy response in 2009 with the Internet traffic management practices. When combined with the federal government’s clear support for net neutrality, the Canadian framework is now one of the strongest in the world, providing guidance for the providers and appropriate protections for users and innovative services. The CRTC today released the final chapter (for now) in its net neutrality governance framework, creating policy that establishes strong safeguards against net neutrality violations and severely restricts the ability for providers to engage in zero rating practices.
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