Image via WikipediaThe CRTC is launching a public consultation on the dispute over Internet traffic shaping by Bell Canada.

Bell has been accused of slowing down the speed of its network. The company has justified doing so to tackle heavy users of peer-to-peer file-sharing applications such as BitTorrent.

The decision by the CRTC comes after it rejected a request by smaller Canadian internet service providers to end Bell Canada’s throttling practices.

The public inquiry comes at a time when the CRTC is also holding a public consultation on its approach to the regulation of new media.

At stake is the issue of network neutrality. This has already become a major issue south of the border in the US.

Network neutrality, or net neutrality prevents Internet providers from speeding up or slowing down web content based on its source, ownership or destination.

Its supporters argue that net neutrality is the reason why the Internet has driven economic innovation, democratic participation, and free speech online.

UPDATE: P2Pnet has the CRTC decision in full.