Whether the Internet and e-commerce in general are matters of federal or provincial jurisdiction has not been conclusively decided in Canada. That said statutory interpretation and government practice both suggest that its most likely federal.
Section 92(10) of the Constitution Act (1867) grants the federal Parliament exclusive jurisdiction over interprovincial works and undertakings related to transportation or communication. This has provided an interpretive basis for the extension of federal jurisdiction over telecommunications and television and radio broadcasting. The nature of the Internet as an interprovincial and international communications system posits a strong argument in favour of federal jurisdiction over related works and undertakings - notwithstanding the possibility that Internet telephony and Web broadcasting, for example, may also fall under traditional federal regulatory scrutiny. Federal jurisdiction could in theory extend to matters relating to the management and operation of Internet works and undertakings, or to Internet content.