Federal, provincial politicians enraged by Liberal retreat under Online Streaming Act

The Liberal government is facing an onslaught of criticism from all sides of the political spectrum over its plan to “eliminate” contribution requirements facing U.S. streamers. As first reported by The Wire Report, Ottawa disclosed its intent to “eliminate the base contribution requirement on streaming services and to provide government funding to replace those contributions” in a filing before the Federal Court of Appeal earlier this month. The base contribution policy, introduced by the CRTC under the Online Streaming Act in 2024, forces streamers, like Amazon.com Inc., Apple Inc., and Netflix Inc., to earmark five per cent of Canadian revenues for the development of domestic news and entertainment content. The funding has since been held up in a judicial dispute initiated by several streaming companies. Earlier this year, another CRTC decision sought to up the contribution threshold to 15 per cent, though the Liberals quickly ordered the regulator to hit pause on the policy. Canadian Identity Minister Marc Miller (Ville-Marie—Le Sud-Ouest—Île-des-Sœurs, Que.) promised to issue new policy directions later this year that would ask the CRTC to refocus its regulations on “affordability” and “consumer choice.” The feds also introduced $600 million in annual funding for the organizations that originally stood to benefit from the streamer contributions. It had remained unclear whether streamers would still be bound by the initial five per cent policy, which was expected to generate more than $2 billion for cultural producers by 2030, before federal lawyer Michael H. Morris confirmed the government’s plans in a message to the court. “This is a deeply disturbing and troubling decision by the government,” said NDP MP Heather McPherson (Edmonton Strathcona, Alta.) in an interview with The Wire Report. “It means there’s going to be fewer resources available for Canadian productions, and Indigenous and Francophone content.” “It’s also going to hurt Canadian workers and it’s going to hurt our cultural sovereignty.” McPherson suggested the reversal was the latest example in a trend of Ottawa sacrificing the domestic cultural industry in search of a stronger position at the bargaining table with the U.S. during ongoing discussions surrounding North America’s free trade deal. “They’re prioritizing appeasement of Donald Trump and supporters in charge of these web giants,” said McPherson, also the New Democrat critic for heritage. “How much have we given up? And none of it has ever resulted in leverage.” “It would be one thing if we’re seeing any results, but we are not. We are still facing the potential of 50 per cent tariffs on certain goods, CUSMA (Canada-U.S.-Mexico Agreement) is being ignored, so the strategy that Mark Carney (Nepean, Ont.) is implementing is not working.” NDP MP Heather McPherson speaks at a press conference in the House of Commons foyer on June 4, 2026, about a proposed New Democratic Party bill to protect workers from employer-dominated unions. The Hill Times photograph by Andrew Meade Former NDP deputy leader Alexandre Boulerice (Rosemont—La Petite-Patrie, Que.), who currently sits as an Independent MP ahead of an anticipated run in Quebec’s provincial election later this year, agreed “the Carney Liberal government is bowing down to the U.S.” “It changes nothing and gives us nothing,” wrote Boulerice on social media about the decision. Carney was repeatedly asked about the decision during an unrelated press conference on July 29. He told reporters he wanted to combat any rising costs caused by a decision from the CRTC, whom he called a member of the “federal family.” “Most Canadians have one or two streamers and it’s real money,” Carney said in Red Deer, Alta. “This stuff adds up.” “We took the judgement there’s a better way to do it, and we’ll give the direction accordingly.” The prime minister also rejected a question framing the decision as a new concession to the U.S., as he said the move was part of the government’s larger pivot on streaming policy announced “two months ago.” American business interests have long opposed the policy approach adopted by the Online Streaming Act, formerly known as Bill C-11 – which was introduced by Justin Trudeau’s government in 2022 – but it has also captured the White House’s attention in recent months. The Trump administration repeatedly identified the law as a trade “irritant” in the leadup to bilateral discussions on CUSMA. Republican congressman Lloyd Smucker also introduced a U.S. federal bill that, if passed, would launch an investigation into whether the contribution requirements discriminate against U.S. companies. However, Jamieson Greer, Trump’s top trade representative, recently said that Canada won’t “get credit for doing something bad and then undoing it,” when asked about Ottawa’s changed stance on streaming rules. The Computer and Communications Industry Association (CCIA), which counts Amazon, Apple, and Alphabet Inc.’s Google among its membership, has long pushed for Canadian lawmakers to repeal the Online Streaming Act. “The Canadian government’s clear statement that it intends to scrap an unjustified and discriminatory fee on streaming companies is highly welcome, and Canadian consumers will be spared a new cost they would likely have had to pay,” said CCIA vice-president Jonathan McHale in a statement to The Wire Report. Closer to home, Conservative MPs had expressed concern that streamers could pass the contribution requirements onto Canadian consumers through boosted subscription fees. However, the Tories ripped the federal government for filling the gap with $600 million in public funding, which they argue leaves taxpayers holding the bag. “Conservatives warned that forcing streaming services to fund legacy media would jeopardize our trade relationship with the U.S. and increase costs for Canadians,” Conservative MP Rachael Thomas (Lethbridge, Alta.) said in a social media post. “Now the Liberals are retreating on their tech tax—and expecting taxpayers to pick up the tab.” Meanwhile, Green Leader Elizabeth May (Saanich—Gulf Islands, B.C.) said she was “appalled” by the government’s decision, describing it as having “scrapped requirements transnational streaming giants share either profits or investments.” “This is gutting Canadian cultural investments,” she told The Wire Report. Decision sparks separatist fervor in Quebec In la belle province, separatist leaders at the federal and provincial level framed the decision as a dereliction of duty from the Prime Minister’s Office, and an example of why Quebec should assume complete control over its cultural sovereignty. “Mark Carney’s Liberals are caving to Donald Trump and sacrificing the cultural sector—the very future of our French-language cinema and television,” said Bloc Québécois Leader Yves-François Blanchet (Beloeil—Chambly, Que.) in a statement translated from French. “It is yet another sign of weakness.” “This time, they are violating their own legislation and inviting online broadcasters to come and make money in Quebec and Canada without contributing in any way to the development of our culture, or even paying taxes in Canada.” Blanchet called on the Liberals to “reverse course” and maintain the CRTC’s initial five per cent decision. Bloc Québécois leader Yves-Francois Blanchet speaks with reporters in the House of Commons foyer on Oct. 30, 2023 (photo by Andrew Meade). In the provincial capital, the sovereigntist Parti Québécois (PQ) called the move a “blatant injustice” for Quebec’s producers, broadcasters, and artists. “Here is new proof that it is futile, even perilous, to entrust Ottawa with the protection of our culture and the discoverability of our content,” said PQ MNA Catherine Gentilcore, a former president of the provincial party. “Above all, it is the fast track to even more Americanization of our culture.” “The Liberal Party of Canada talks about sovereignty, but in reality, it does nothing but yield.” Quebec’s provincial election is set to be contested later this year, with the PQ battling with the Quebec Liberal Party and incumbent Coalition Avenir Quebec in recent public opinion polls. PQ Leader Paul St-Pierre Plamondon has vowed to hold a third referendum on Quebec independence, should the sovereigntists win power. Uncertainty lingers as feds draft policy direction Despite the recent court filing, some stakeholders are dubious the federal approach to U.S. streamers has actually changed. Kevin Desjardins, president of the Canadian Association of Broadcasters (CAB), said it was “premature” to take what he called “an administrative communication with the court” and assume it indicates wholesale policy changes. “It certainly raises questions it doesn’t match what we’ve heard from our discussions with the government,” he told The Wire Report in an interview. “I think it’s possible to read too much into some of that language.” “I don’t know that there is a way for the government to say Canadian broadcasters should still have to make contributions, but foreign streamers are exempt or have their contributions covered by the government. That’s just not a tenable position, and I think the government is well aware of that.” The CAB administers the Independent Local News Fund, one of the programs that was set to receive funding through streamer contributions. Miller’s office has not directly addressed the court filing revealing the government’s plans to scrap the base contribution, but told The Wire Report that, under the new policy directions, “platforms will still be required to reinvest a proportion of their revenue into Canadian content under the Online Streaming Act.” It remains unclear how the Liberals plan to set the contribution rate for streamers, considering the original decisions were made by the CRTC, an independent regulator. However, broadcasting policy experts, like the University of Ottawa’s Michael Geist, have theorized that Ottawa will effectively hit reset on the policy and come back with more modest funding requirements for streaming companies under the Online Streaming Act. Regarding timing, the government’s court filing suggested new policy directions will be released “in the coming weeks,” but multiple industry players have suggested the government’s plan could be shaped politically by both the Quebec election and upcoming midterm races in the U.S. Multiple stakeholders said a PQ win in Quebec could make cultural sovereignty more of a policy priority for Carney’s government, while a weak Republican performance in the midterms could weaken the Trump administration’s hand in CUSMA discussions and potentially allow Ottawa to reinstate stronger funding requirements for streamers. However, Desjardins dismissed both theories as “speculation.” “That’s an assumption that people are making,” he said. “But I certainly haven’t heard anything from the government that leads me to believe that’s guiding their thought process.” dlegree@thewirereport.ca

Federal, provincial politicians enraged by Liberal retreat under Online Streaming Act

Regulatory |
By Davis Legree
|July 29, 2026

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Federal, provincial politicians enraged by Liberal retreat under Online Streaming Act

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