Bloc Québécois makes renewed push on digital services tax and streaming contributions
The Bloc Québécois is calling on the Liberal government to bring back the digital services tax on tech giants and to keep Canadian content financial contributions for streaming companies. The request comes after trade talks with the United States broke down on Friday and 50 per cent tariffs on a host of Canadian goods took effect on Saturday.
Both policies—the digital services tax and the streaming contributions—had been moved for elimination by the Liberals after the United States identified them as trade irritants. The Bloc now wants the government to change course.
Carney defends cultural protections as 'fundamental rights'
Prime Minister Mark Carney addressed the issue on Monday at a press conference in Lévis, Que. He said that while the French language and Quebec and Canadian culture might be trade irritants for the Americans, in Canada they are fundamental rights.
Carney said among the reasons for the suspension of trade negotiations were demands from the U.S. that would have affected Canada's ability to protect its culture, including the French language. He noted that U.S. pressure around discoverability rules—which, if implemented, would affect what options Canadians see when using streaming services—was one of the things that led Canada to end the talks. He also mentioned that French-language labels were on the list of American irritants.
Disagreement between Canadian and U.S. officials
U.S. Trade Representative Jamieson Greer offered a different perspective. In comments that Carney was asked about, Greer said the issue in the trade talks wasn't the French language, calling that a "funny fake story." He said the real problem was requiring U.S. streaming companies to make financial contributions toward Canadian content.
Background on streaming regulations and government changes
The CRTC's rules requiring large foreign streaming companies to contribute to Canadian content and its ongoing work on discoverability requirements are conducted under Canada's Online Streaming Act. As part of implementing that law, the CRTC imposed Canadian content financial contributions for streamers and began work on discoverability requirements.
However, the Liberal government moved in June to eliminate the financial contribution requirements for streaming platforms like Netflix. After the broadcast regulator increased contributions to 15 per cent of Canadian revenues, Ottawa said it would issue a new policy directive to the CRTC and instead directly provide the industry with $600 million in annual funding.
Discoverability rules still in development
The CRTC has not yet implemented rules around discoverability. In a May decision, the regulator said online streamers will have to take steps to ensure Canadian and Indigenous content is available and visible to audiences, but that the details of those requirements would be determined at a later time. CRTC vice-president Scott Shortliffe said the regulator wouldn't impose "a system-wide series of requirements now" but would work with platforms individually.
Quebec passed a provincial law dealing with discoverability in 2025, but specific rules won't come into effect until regulations are developed. There are questions about whether Quebec will be able to implement its provincial law, given that the federal government has jurisdiction over broadcasting policy.