The Canadian government has announced it will effectively kill the CRTC’s recent Online Streaming ruling by issuing a new policy direction that forces the regulator to redo its decision — a rare and dramatic intervention that comes less than two weeks after the ruling was released. Michael Geist
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What the government is doing• Ottawa will order the CRTC to revisit and unwind its decision that tripled streamer contributions to Canadian content from 5% to 15% of Canadian revenues. CBC.ca
• Because the Broadcasting Act does not allow cabinet to overturn this type of CRTC ruling directly, the government must use a new policy direction and trigger a fresh CRTC proceeding to nullify the decision. Michael Geist
• To keep the cultural sector onside during the reset, Ottawa is promising a $600 million payout to replace the revenue the CRTC’s ruling would have generated. Michael Geist
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Why the government is reversing course• Prime Minister Mark Carney says the CRTC’s decision would raise prices for Canadians, and “this is not the time to raise the cost for Canadians.” CBC.ca
• The ruling had become a major trade irritant with the United States, especially as CUSMA is up for review. The U.S. had signalled possible tariff retaliation if Canada pushed ahead. Michael Geist
• The government had already backed down on the Digital Services Tax under similar U.S. pressure, and this move is seen as another concession. Yahoo Finance
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What the original CRTC ruling required• Streaming services with $25M+ in Canadian revenue would have to contribute 15% of that revenue to Canadian and Indigenous content.
• This would have made Canada one of the most expensive jurisdictions in the world for streamers. Michael Geist
• The U.S. Motion Picture Association and the U.S. ambassador warned the policy would drive away investment and raise consumer prices. iPhone in Ca...
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Reaction from Canadian media & labour groups• Unifor calls the government’s reversal a “devastating blow” to Canadian cultural sovereignty and local news, arguing that U.S. tech giants should be required to reinvest in Canada. Yahoo Finance
• Critics say the government is caving to U.S. pressure and undermining years of work to regulate foreign streaming giants.
