I assume the server instance and the user would both have to be in the country. But I don’t think lemmy instances are making money off of their users that I know of.

I think this is unclear, as the CRTC isn’t expected to have the actual policies developed until sometime next year.

However, this is in the text of the bill:

6 This Act applies in respect of a digital news intermediary if, having regard to the following factors, there is a significant bargaining power imbalance between its operator and news businesses:

(a) the size of the intermediary or the operator;

(b) whether the market for the intermediary gives the operator a strategic advantage over news businesses; and

© whether the intermediary occupies a prominent market position.

I can’t imagine this ever applying to decentralized social media.

Could you imagine if you or your grandmother had to pay a dollar to post a link to a Canadian article on a social media site.

The bills objective is to give journalists compensation for their work. I think Lemmy actually promotes this because people click on the links to try to read the article directly, instead of viewing them through a social media platform acting as a middleman.