Ottawa earmarks $176 million to establish online super regulator

An online “super regulator” that was first announced by Ottawa this summer is beginning to take shape after the federal government announced millions in budget spending to support its creation. 

The news: Thursday’s federal budget includes $176.3 million over five years to establish the Digital Safety and Data Protection Commission of Canada (DSDPCC). The commission will be charged with overseeing private-sector privacy regulation under Bill C-36 and implementing the Safe Social Media Act, which is intended to hold social media and chatbot platforms accountable for online harms. 

From the source: The DSDPCC has been described by AI Minister Evan Solomon as “a regulator with teeth.” It would have the ability to impose rules and transparency requirements on companies operating social media or AI chatbots, issue binding orders, compel audits, and fine companies who break those rules up to $10 million, or three percent of their global revenue, whichever is higher. 

The context: Initially pitched as the Canadian Digital Safety Commission, the DSDPCC was first unveiled in June when the Government of Canada announced its Safe Social Media Act, and later expanded upon when Ottawa proposed changes to the country’s existing privacy laws. Under Bill C-26, which has yet to be passed into law, the DSDPCC would oversee private-sector privacy regulation, taking those responsibilities away from Canada’s existing Office of the Privacy Commissioner. 

The budget was sparse on details as to what the rollout of the commission would look like, or benchmarks for when it might come into effect, but said that funding to establish it would begin being deployed during this year and into next year. Previously, the feds said it could take as long as 18 months to get the commission up and running.

Final thought: The legislation Ottawa’s new super regulator is tasked with overseeing and implementing has drawn criticism from some in the tech community, academia, and elsewhere over its broad mandate, its ability to deliver on goals around age-verification and online safety for youth, and its potential to increase digital surveillance and infringe on privacy rights.

Feature image courtesy Evan Solomon via LinkedIn.