Report: ‘Lawful Access’ Laws Threaten Canadian ISPs

LOS ANGELES — The shifting Internet playing field is creating a variety of issues for operators in all arenas, including small web hosts that could be priced into extinction.

One such example comes from Canada, where reports indicate that among other factors, costs associated with implementing proposed Internet surveillance laws could harm and potentially bankrupt smaller Internet Service Providers (ISPs).

According to The Huffington Post, three pieces of legislation that are now pending before Canada’s Parliament would vastly expand law enforcement’s legal ability to collect various forms of intelligence online; such as compelling ISPs to reveal subscriber information, including names, email addresses and phone numbers, without a warrant.

It is a provision requiring ISPs to install real time network monitoring equipment that will allow law enforcement to monitor a suspect’s Internet access and communications as they happen, however, that is worrying the Canadian Network Operators’ Consortium —  a trade body representing more than two dozen ISPs.

Many CNOC members are small to mid-size ISPs with limited financial resources.

“The degree of network monitoring and surveillance they’re asking for is alarming in terms of its costs,” CNOC President Bill Sandiford, who also serves as president of ISP Telnet, stated. “If [some of these] small ISPs need to spend $1 million to be compliant … that could mean the end of them.”

“We’ve co-operated with law enforcement many, many times over the years,” Sandiford stated, adding, “Who’s going to compensate us for this?”

A revised version of the proposals is expected to be introduced later this year.

“The legislation has been condemned by many digital rights activists — as well as provincial and federal privacy commissioners — as a potentially dangerous expansion of police power,” Daniel Tencer wrote for The Huffington Post, “and as the thin end of the wedge to an unaccountable surveillance state.”

Regardless of the final outcome of this legislation or any impact it may have on ISPs, it stands as another example of the global uptick in legislation aimed at monitoring and controlling how people use the Internet; as well as an example of the growing barriers to entry and operation presented by this maturing marketplace.

Related:  

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

California Enacts Stricter UGC Rules for Adult Sites

Governor Gavin Newsom has signed into law a bill to impose tighter compliance standards for user-generated content (UGC) on adult websites accessible in California.

UK Aims to Begin Enforcing 'Choking' Ban Before Year's End

The U.K. will soon begin enforcement of a new law criminalizing depictions of “non-fatal strangulation” in adult content, according to a Ministry of Justice official.

XBIZ LA Conference Website Goes Live, Registration Now Open

The event website for the XBIZ LA conference is now live, offering comprehensive information about the upcoming event, taking place Jan. 7-10 at the JW Marriott L.A. LIVE.

CrakRevenue Rolls Out 'Aff Companion' Real-Time Mobile Notification App

CrakRevenue has launched Aff Companion, a mobile app that sends affiliates real-time notifications about clicks, conversions, and revenue.

Goddess Lilith Launches New Official Website Through PAYSITE

Goddess Lilith has rolled out her new official site, QueenGoddessLilith, through PAYSITE.

Pineapple Support to Host 'Reclaiming Intimacy' Support Group

Pineapple Support is hosting a free online support group for performers with trauma-impacted intimacy issues.

Ofcom Cites Web Prime, Porntrex for Alleged AV Violations

U.K. media regulator Ofcom on Tuesday notified two operators of adult websites of the agency’s provisional determination that the companies have failed to comply with provisions of the Online Safety Act.

FSC: Utah Excise Tax on Adult Content Goes Into Effect October 1

The Free Speech Coalition (FSC) has issued an advisory that the Utah Excise Tax goes into effect tomorrow.

Segpay Parent Company Names David Press to Board

Segpay parent company Toccata Inc. has named payment industry veteran David Press to its board of directors.

Platform Pulse: Inside the Technology and Trends Powering the Direct-to-Fan Economy

For a brief, glittering moment, the fan-platform boom felt like a modern-day gold rush. The premise seemed simple: Open an account, post some tantalizing content and watch the subscriptions roll in. OnlyFans became a household name, "selling feet pics" became a cultural punchline and creators poured into the market hoping to claim their share of the action.

Show More