It’s unlikely feds will stand by streaming law if U.S. retaliation targets ‘more important’ economic areas, says Geist

The pros may not outweigh the cons if the federal government stands by the Online Streaming Act amid potential U.S. retaliation, said Michael Geist, professor at the University of Ottawa and Canada Research Chair in internet and e-commerce law. Republican Rep. Lloyd Smucker introduced the Protecting American Streaming and Innovation Act on March 19, a U.S. bill that, if passed, would launch an investigation under Section 301 of the 1974 Trade Act to determine if Canada’s digital streaming law discriminates against American companies. Among other things, the Canadian legislation would require U.S. streamers to earmark a portion of their Canadian revenues to fund domestic cultural agencies. However, the bill is yet to take effect, as several eligible streamers are fighting this provision at the Federal Court of Appeal, which has yet to make a ruling. Geist, who has been critical of the Online Streaming Act since its inception, told The Wire Report that irritations in the U.S. have been boiling over the bill for a long time. “It’s no surprise to see this escalation,” he said. If faced with U.S. retaliation, Geist said it is possible the feds will ditch the bill, especially with the United States-Mexico-Canada Agreement (USMCA) review slated to begin in July. . “It’s difficult to envision seeing the government standing by the bill, if the trade-offs involve some areas that may be viewed as more sensitive or more important economically,” he said. Canada-U.S. Trade Minister Dominic LeBlanc’s office refused to comment on whether the escalation changes Canada’s willingness to use the act as a bargaining chip in USMCA negotiations. The “irony here,” Geist said, is American streamers are some of the biggest spenders in terms of Canadian film production. While one of the goals of the Online Streaming Act is to get more money in the hands of certain Canadian industry players, Geist argued it’s not clear the act would make a significant difference in overall spending in Canada. That is because streamers could just reallocate some of their existing spending towards the regulatory requirements. In a statement posted on its website, the Motion Picture Association supported Smucker’s bill, saying “Canada’s Online Streaming Act disadvantages American companies and undermines competitiveness by requiring streaming companies to subsidize and promote Canadian content over their own productions through discriminatory obligations that Canadian broadcasters do not face.” Just days after the bill was introduced in 2020, Geist argued the legislation was risky, in part because of how it leans on the cultural exemption language in the USMCA He said, for the most part, supporters of the bill have argued that the cultural exemption gives Canada a “get-out-of-jail-free card” for implementing protectionist policies. The problem with that, Geist said, is that built into the exemption is the ability for the U.S. to impose counter-tariffs or retaliation, which can target any sector it wants. The concerns with the bill date back to the Biden administration, but Geist said the Trump administration’s position on tariffs makes the bill all the more risky. “It’s not free, and it comes with a significant retaliatory risk,” he said. “And it seems pretty likely, especially under this administration, that they would be willing to exercise that.” Geist believes, if the U.S. bill is passed, the streaming act would be vulnerable to an investigation, and could get worse if the CRTC makes good on its plans to increase contribution levels. “The more these companies are required to pay into funds that they themselves don’t benefit from,” he said, “the more likely it is that they are going to oppose the legislation and that the U.S., frankly, will support that opposition.” mcollins@thewirereport.ca

It’s unlikely feds will stand by streaming law if U.S. retaliation targets ‘more important’ economic areas, says Geist

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By Maria Collins
|March 20, 2026

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It’s unlikely feds will stand by streaming law if U.S. retaliation targets ‘more important’ economic areas, says Geist

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