The Chamber’s intervention
The Canadian Chamber of Commerce has pressed Prime Minister Mark Carney to separate his government’s lawful-access bill into two distinct tracks, warning that the current legislation risks placing Canadian firms at a competitive disadvantage against counterparts in the United States and the European Union—and could even encourage them to leave the country.
Matthew Holmes, executive vice-president and chief of public policy at the Chamber, delivered the warning in a letter to Carney this week. The organisation argues that the timing is especially poor, given the ongoing trade dispute between Canada and the United States.
The letter states that Bill C-22, the government’s lawful-access measure, “goes considerably further in several critical areas” than equivalent regimes operating in Washington and Brussels. Among the Chamber’s concerns is a provision that could compel companies to retain customer metadata for as long as six months.
Encryption and the cost of compliance
Bill C-22 would oblige telecommunications firms, internet platforms and other electronic service providers to modify their systems so that police services and the Canadian Security Intelligence Service can access data for surveillance and monitoring purposes.
Security agencies have long maintained that Canada trails its Five Eyes allies—the United States, Britain, Australia and New Zealand—because it lacks a comparable lawful-access framework to support criminal and intelligence investigations.
Yet the Chamber cautions that the bill could expose Canadian industry to liability if a law-enforcement intrusion compromises system integrity. In language that carries a direct threat to the domestic tech sector, the letter suggests that some companies might conclude the only rational response is to shift systems or operations outside Canada.
“Businesses make investment decisions by weighing risk against reward,” Holmes writes.
Silicon Valley pushes back
The Chamber is not alone in its alarm. Signal has already indicated that amendments offered by Public Safety Minister Gary Anandasangaree will not be enough to keep the messaging service in Canada. Apple, too, renewed its criticism on Thursday, arguing that C-22 could still weaken encryption and jeopardise the privacy of its Canadian users.
Apple’s statement said: “While we appreciate attempts to improve C-22, the bill could still undermine Apple’s ability to offer the powerful privacy and security features our users expect from us, including encryption, even as AI and other evolving technologies provide hackers with new tools to exploit cybersecurity weaknesses.”
A Toronto-based VPN provider has separately announced plans to quit the country over the legislation.
Amendments and the Senate path
At committee stage, Anandasangaree introduced changes intended to address objections from technology companies, legal experts and civil liberties groups. One amendment clarified that a provider without an encryption key cannot be compelled to decrypt data it holds.
Simon Lafortune, a spokesperson for the minister, said the government welcomes the Chamber’s engagement and stressed that Commons amendments made clear service providers cannot be forced to break encryption or create systemic vulnerabilities. He added that officials remain open to further changes as the Senate considers the bill.
The legislation is now in the upper chamber after being hurried through the House of Commons committee stage, a move that provoked consternation among Conservative MPs.
The Chamber is urging Carney to slow down the lawful-access portion of the bill to allow broader industry consultation, while permitting the first part—which does not contain the surveillance provisions—to proceed through Parliament. It has proposed surgical amendments, including deleting the six-month metadata retention requirement and inserting a clause stating that nothing in the act is intended to restrict the use of encryption in Canada.
The organisation also points to a recent European Union proposal as a model that balances rapid production of electronic evidence with judicial oversight. It says it is ready to work with Carney’s ministers to develop what it describes as a “truly Canadian approach to lawful access” that equips police to investigate criminals while keeping Canadian data, systems and businesses secure and globally competitive.
Why it Matters
The standoff over Bill C-22 cuts to the heart of Canada’s ambition to be both a secure democracy and a destination for digital investment. If the government cannot reconcile the demands of intelligence agencies with the privacy expectations of global technology firms, it risks losing more than just a legislative battle—it could lose companies, jobs and credibility in an increasingly contested digital economy.
