Bill C-8 : 2025 Cybersecurity Act

Canada's New Cyber Shield: A Plain-English Guide to Bill C-8

The stability of our banking, the flow of our power, and the reliability of our internet are things we often take for granted. But the digital systems that underpin these essential services are facing increasing threats. In response, the Canadian government has introduced a significant and controversial piece of legislation known as Bill C-8, which aims to create a new defensive shield around the country's most critical infrastructure.

This bill is complex, granting the government sweeping new powers that have sparked intense debate. Here’s a straightforward guide to what Bill C-8 is, what it does, and why it matters to you.

First, What is Bill C-8?

In Canada's Parliament, bills are numbered sequentially. This means the "C-8" label gets reused in different parliamentary sessions for entirely different laws. In recent years, there has been a Bill C-8 to implement economic updates, another to amend the Citizenship Act, and yet another to reform corporate governance.

The current Bill C-8, introduced in the 45th Parliament, is formally titled An Act respecting cyber security, amending the Telecommunications Act and making consequential amendments to other Acts. This one is all about cybersecurity. It’s a legislative reboot of a nearly identical bill from the previous parliament, Bill C-26, which almost became law. Its reintroduction signals the government's urgent push to overhaul Canada's approach to digital defense.   

What's in the Bill? A Two-Part Plan

Bill C-8 takes a two-pronged approach to cybersecurity, creating new rules and a brand-new law.   

Part 1: New Powers Over Phone and Internet Providers

The first part of the bill amends the Telecommunications Act to give the federal government powerful new tools to protect Canada's communication networks. The government would gain the authority to order telecommunications service providers (TSPs)—the companies that provide your internet and phone services—to do, or refrain from doing, almost anything deemed necessary for national security.

These powers include:

• Banning Equipment: Ordering a TSP to stop using products or services from a specific supplier, such as a foreign company deemed a security risk.

• Forcing Removal: Directing a TSP to rip out and replace equipment that is already part of its network infrastructure.

• Reviewing Purchases: Requiring TSPs to submit their procurement plans for government review before buying new technology.

Crucially, the bill states that companies will not be compensated for any financial losses they suffer while complying with these orders. Combined with staggering potential fines for non-compliance—up to $15 million per day for corporations—this places a massive financial burden on the private sector. 

Part 2: A New Law to Protect "Vital" Services

The second part of the bill enacts an entirely new piece of legislation: the Critical Cyber Systems Protection Act (CCSPA). This law creates a mandatory cybersecurity framework for federally regulated companies that operate "vital services" and "vital systems."   

The sectors covered include :   

• Telecommunications

• Banking and financial clearing systems

• Energy (interprovincial power lines, nuclear energy)

• Transportation (federally regulated railways, ports, etc.)

Under the CCSPA, companies designated by the government as "designated operators" will have several new obligations :

• Establish a Cyber Program: They must create, implement, and maintain a comprehensive cybersecurity program within 90 days of being designated.

• Manage Supply Chain Risk: They are required to identify and mitigate cybersecurity risks coming from their supply chains and third-party service providers.  

• Report Incidents: Any cybersecurity incident affecting a critical system must be reported to the Communications Security Establishment (CSE), Canada's national cyber agency.  

• Comply with Secret Directions: Designated operators must follow any "cyber security direction" from the government, which can be issued confidentially.   

Failure to comply with the CCSPA can result in even steeper penalties, with fines reaching up to $15 million per day for an organization.   

The Big Debate: Security vs. Cost and Privacy 

While there is broad agreement on the need to protect critical infrastructure, Bill C-8's methods have drawn significant criticism from industry and civil liberties advocates.   

• Industry Concerns: Operators in the affected sectors face "substantial compliance challenges". The main worries are the high operational costs and the immense financial risk from the combination of uncompensated government orders and massive fines. This could make businesses hesitant to innovate or adopt new technologies, potentially stifling competition. Furthermore, because the government has not yet specified which companies will be "designated operators," a wide range of businesses must prepare for these heavy obligations under a cloud of uncertainty.

• Civil Liberties and Privacy Concerns: The Canadian Civil Liberties Association (CCLA) and other privacy advocates have raised alarms about the bill's potential impact on the rights of Canadians. Key concerns include:   

• Government Secrecy: The power to issue confidential orders that cannot be disclosed to the public is a major transparency issue.  

  • Weakening Encryption: The bill's broad language could potentially be used to force companies to build backdoors or otherwise undermine the security of encrypted communications, putting everyone's privacy at risk.   

  • Information Sharing and Surveillance: The bill mandates that companies share large amounts of information, including sensitive data about breaches and network vulnerabilities, with the CSE. Critics worry this information could be used for broader surveillance purposes, especially since the CSE has a dual mandate: protecting Canadian networks (a defensive role) and gathering foreign intelligence (an offensive role). This conflict could create a "chilling effect," making companies reluctant to fully disclose incidents for fear the information could be used for intelligence gathering.   

What's Next?

Bill C-8 has passed its first reading and is now at the second reading stage in the House of Commons. Because it is so similar to its predecessor, which had already made it through most of the legislative process, many observers expect it to move quickly.

Ultimately, Bill C-8 represents a fundamental shift in Canada's approach to national security. The debate to come will focus on finding the right balance: one that secures the nation's vital systems without imposing undue economic burdens or compromising the privacy and civil liberties of Canadians.