Liberals accused of kneeling to White House, big tech as CRTC order divides opposition MPs

The federal government has asked the CRTC to review its recent decision requiring online streamers to contribute 15 per cent of Canadian revenues to fund local news and entertainment programming, citing affordability concerns for consumers. Canadian Identity Minister Marc Miller announced the government will develop new policy directions for the CRTC’s implementation of Bill C-11, the Online Streaming Act (OSA), which he said will centre around affordability, consumer choice, and supporting Canadian producers. “The CRTC’s new requirements would impose new costs on the companies providing these services, which could ultimately fall on Canadian consumers through higher prices,” read a press release issued on Wednesday. “At a time when Canadians face cost-of-living pressure, now is not the time to make culture and entertainment more expensive.” Along with the announcement, Miller (Ville-Marie—Le Sud-Ouest—Île-des-Soeurs, Que.) committed $600 million in immediate support for the radio and television sectors, about a quarter of the approximately $2 billion the CRTC decision was expected to annually contribute to the ecosystem. “We don't agree entirely with the CRTC's decision,” Miller said. But it’s not entirely clear why. Asked repeatedly by reporters why the government is having the decision reviewed in favour of a temporary funding injection, despite the fact industry officials have said the decision provided much-needed relief, Miller cited delays in implementing the OSA. “The reality is the sector is one that's been suffering. It's been suffering for years,” Miller told reporters following the announcement. “We introduced Bill C-11, as you recall, to make sure that people were paying their fair share.” “Since then, there's been litigation that have frozen funds that . . . are intended to support the sector, and haven't. And today, we're impatient to make sure that that gets out.” Previously, streamers were required to earmark 5 per cent of annual Canadian revenues to local news and cultural media. But those funds have been held up in court as American streaming companies battle the CRTC’s order. Prime Minister Mark Carney (Nepean, Ont.) echoed affordability concerns to reporters. “This is not the time to raise the costs for Canadians,” he said. “When the CRTC takes decisions as they did last summer with respect to telecom and telecom sharing on broadband which helped to lower costs for Canadians, we’re very much in support, but this is not the time to make Canadians pay another $50.” In his remarks, Miller criticized how long it has taken the CRTC to implement the OSA, though it's not the first time he has done so. In April, Miller prompted questions of political interference when he posted on X saying, “I’m disappointed that the CRTC is not moving faster to fully implement the Online Streaming Act, a law that ensures online streamers pay their fair share.” But Miller’s directive will almost certainly further the delay in implementing the act. Since the decision was released on May 21, the federal government has faced pressure from the Conservatives to strike down the CRTC’s decision, which the government does not have authority to do. Tories take victory lap, as Bloc calls decision 'unacceptable' Speaking to reporters following the decision, Tory heritage critic Rachael Thomas (Lethbridge, Alta.) accepted the credit on her party’s behalf for the government’s directive. “We were told that we were making up ‘imaginary tax,’” she said. “The Liberals were content to sit back and do nothing as Canadians were burdened with yet another cost, until Conservatives drew attention to the issue and pressure was applied.” MPs voted down a Conservative motion to kill the contribution requirements on Monday. Notably, Miller’s decision does not automatically abolish the decision, and the CRTC has the authority to decide whether its decision meets the government’s policy directives. Since the CRTC operates as an arm’s-length regulator, the government cannot advise the commission on any final decision. Conservative MP Melissa Lantsman (Thornhill, Ont.) took to X to weigh in on the conversation. “I’m old enough to remember when the government insisted this wasn’t a tax at all. They said their hands were tied, that they couldn’t do anything about it,” she said. “The same government that swore this wasn’t a tax and blamed the CRTC is now proud to own it, because apparently making life more expensive for Canadians is the one promise they actually keep.” However, political support for the government’s decision stopped at the Conservative benches. Speaking to reporters in French, Bloc Québécois Leader Yves-François Blanchet (Beloeil—Chambly, Que.) called the decision “completely unacceptable.” Blanchet invoked the Digital Services Tax, which Carney killed last year in an effort to advance trade negotiations in the U.S. The sovereigntist leader argued the government abandoned an annual boost of $1.43 billion, only to gain nothing in return. Blanchet said the CRTC is doing the job Parliament asked of it when it adopted Bill C-11 and accused the Carney government of once again abandoning cultural support to appease American tech giants ahead of the review of the Canada-U.S.-Mexico Agreement (CUSMA) in July. “They are saying the good news in giving up this 3.4 billion dollars a year, is we will give you $600 million that is coming from the pockets of taxpayers instead of Netflix, Prime, or Disney,” he said. Blanchet also said the decision “makes no sense.” He questioned why the government would change its policy to offer an industry, which it acknowledged is economically struggling, less funding. “I am inviting people who think it’s great that the government is going to give $600 million to analyze this correctly,” he said in French. “We are telling businesses that are much richer than a lot of countries in the world, ‘We’re going to give you a break. You can take that money and go pay for the U.S. president’s ballroom.’” This is just another cultural concession in a year’s worth of bending to the U.S., he said, arguing the only thing Canada has ever gotten in return is more 51st state quips. “This is catastrophic for Canadian and Québécois media and creators,” he said. “The decision is, frankly, to put down our arms before even starting a negotiation.” “We are telling the interlocutor, ‘We are weak. What do you want?’” In an interview with The Wire Report, NDP heritage critic Heather McPherson (Edmonton Strathcona, Alta.) said the Liberals had "folded to pressure." "This, to me, looks very similar to the other appeasement we've seen the government doing, like with the Digital Services Tax," she said. "We know Canadians overwhelmingly support making sure there is economic support for Canadian broadcasting." "And we think this is an important thing to have in place to protect Canadian cultural sovereignty." Earlier this year, a public opinion poll suggested 83 per cent of Canadians support the Online Streaming Act, including a majority of respondents from each of Canada's major political parties. McPherson also said it's a "problem" that the federal government is intervening in a CRTC decision, considering the regulator's supposed independence and arm's length distance from the government. Green Party Leader Elizabeth May (Saanich—Gulf Islands, B.C.) also expressed her distaste for the decision. In response to a question from The Wire Report, she said “the online streaming rules come from an independent, arm’s-length CRTC and it’s inappropriate for cabinet to intervene.” Cultural organizations, U.S. industry groups divided on familiar lines Following the decision, concern spread across Canadian cultural associations, which were recently celebrating the CRTC’s direction. “With this announcement we are concerned that the federal government has sold out Canadian culture in favour of big US tech interests,” wrote Canadian Media Producers Association chair Kyle Irving in a statement. “If the file taught us anything, it is that concessions with nothing in return, only result in demands for more concessions. Irving urged Carney to stand up for Canadian media and culture, adding that big tech’s “free ride” must end. “Since US streamers entered Canada a decade ago, they have consistently raised their prices on Canadian subscribers, year after year. Make no mistake, this will continue regardless of any government action,” he wrote. Eleanor Noble, national president of the Alliance of Canadian Cinema, Television and Radio Artists, said the industry had endured years of debate to get legislation requiring “billionaire-owned streamers to pay the bare minimum into Canadian culture.” “We thought we were finally there,” she wrote in a statement. “Instead, today's decision lets billionaire streamers and studios completely off the hook.” “Rather than requiring wealthy media companies to modestly invest in Canada’s cultural ecosystem, Ottawa has chosen to transfer that responsibility to Canadian taxpayers under the guise of ‘consumer protection’. Unsurprisingly, big tech companies and their respective associations were jubilant over the government order. The Digital Media Association represents the world's largest music streamers, including Spotify AB, Apple Inc., Amazon.com Inc., and Alphabet Inc.’s YouTube. The organization said it supports the government’s announcement and hopes “Minister Miller’s forthcoming directive will be a crucial and welcome step towards ensuring Canadians retain access to affordable music streaming services, while still providing robust support for Canadian artists and culture.” “By directing the CRTC to review its framework and stepping up with federal investments for the cultural sector, the government has shown a commendable willingness to listen to the concerns of the digital industry, creators, and everyday consumers,” a statement read. The Computer and Communications Industry Association also props up the interests of big tech players, including Meta Platforms Inc., Google, Apple, and Amazon. In a statement, Jonathan McHale, vice president of digital trade, congratulated Canada’s decision to halt its “discriminatory regulation of online music and video.” “This decision also reflects the sustained engagement of , whose longstanding efforts should be recognized,” he wrote. Meanwhile, the Washington D.C.-based National Foreign Trade Council, one of America’s leading trade associations, said Ottawa’s decision reflected that support for Canadian media “should come from the Canadian government, not U.S. companies.” “This change is a step in the right direction, and we look forward to engaging the government as it develops a new policy direction for the CRTC,” said Brad Wood, the council’s senior director, in a statement. Zac Carreiro, a spokesperson for Rogers Communications Inc., wrote in a statement that “the CRTC’s framework would have introduced complicated and onerous new expenditure quotas with no meaningful relief to Canadian broadcasters, while placing a much lighter set of obligations on American streamers.” “Today’s fiercely competitive environment demands the immediate reduction or elimination of the mandatory financial contributions and inflexible expenditure requirements imposed on Canadian cable companies and broadcasters,” he added. Liberal pivot comes 'better late than never': Geist But the supporters for Miller’s move did not stop with stakeholder companies, as pro-consumer voices who have long been standing up to the OSA have joined in on the applause. Josh Tabish, senior director for Canada at the Chamber of Progress, called the CRTC’s contribution requirements “way out of line internationally.” “Minister Miller deserves full credit for supporting Canadian content without raising costs or reducing choice for Canadians,” he wrote. In a blog post, Michael Geist, Canada Research Chair in Internet and E-Commerce Law at the University of Ottawa and long-time critic of the OSA said the decision comes “better late than never,” but took aim at the $600 million commitment. “The reversal, which undoubtedly reflects the harm the decision caused as part of trade negotiations with the United States, comes at a cost to taxpayers,” he wrote. He added the CRTC decision opened the door for “massive” trade retaliations if the government leaned on CUSMA’s cultural exemption. In March, Geist told The Wire Report it’s unlikely the feds would stand by the OSA if U.S. retaliations target “more important” economic areas, and on Wednesday, he pointed out the swiftness with which Miller moved to push back on the CRTC. “Governments do not move to unwind CRTC decisions within two weeks unless they have concluded that it cannot stand,” he wrote. In response to the announcement, CRTC spokesperson Mirabella Salem reiterated the commission’s status as an arm’s-length regulator and said it is “aware” the government intends to issue new directives. “The CRTC holds public consultations on telecommunications and broadcasting matters and makes decisions based on the public record,” she said. “The CRTC will review any new policy directions as they are released.” It is not clear when Miller intends to release his directives, as the minister’s office told The Wire Report the specific language was still being drafted. mcollins@thewirereport.ca With a file from Davis Legree Editor's note: This story has been updated to include comments from NDP MP Heather McPherson.

Liberals accused of kneeling to White House, big tech as CRTC order divides opposition MPs

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By Maria Collins
|June 4, 2026

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Liberals accused of kneeling to White House, big tech as CRTC order divides opposition MPs

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