What’s at stake?
Under Canada’s Online Streaming Act (Bill C‑11), which became law in April 2023, the Canadian Radio‑television and Telecommunications Commission (CRTC) gained powers to regulate streaming services. Any service earning more than $25 million in Canada must invest 5 percent of its Canadian revenues into Canadian content from Indigenous and francophone programming to local indie news. That is expected to generate roughly $200 million annually.
Why the legal fight?
Apple, Amazon, and Spotify argue the CRTC exceeded its authority under the Broadcasting Act. Spotify says the charge is a hidden tax, while Amazon claims it’s unfair to treat foreign services differently from Canadian media companies. Apple adds that the rule is premature and inequitable as it requires five times the contribution of radio, yet leaves out access to the very funds streamers pay into.
Meanwhile, the Motion Picture Association–Canada (representing Netflix, Paramount, Disney, others) takes issue with a 1.5 percent local news fund contribution. It argues streamers don’t produce news, have no news licenses, and can’t access the funds they’re asked to support.
Canadian broadcasters respond
The Canadian Association of Broadcasters counters that traditional media has shouldered the burden of funding Canadian content for decades, while online players escaped unscathed. Broadcasters warn streaming giants have accelerated a funding crisis for local news and independent outlets.
Unintended consequences
Local TV journalist Sarah MacDonald from rural Ontario shared, “Our newsroom covers everything from high‑school sports to floods, without this funding, what happens to people’s stories?” Meanwhile, Ottawa-based media watchdog Joe Patel cautions: “These contributions aren’t taxes, they’re investments in Canadian identity.”
But critics, including University of Ottawa professor Michael Geist, warn the 5 percent levy could raise subscription costs or spark market exits, just as Spotify did in France when similar regulations hit.
Looking ahead
Canada’s Federal Court of Appeal will likely rule this summer. The decision could redefine “fair” regulation in the digital age, balancing global services and Canadian culture, while deciding who ultimately pays for your local news.
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