The Canadian Radio-television and Telecommunications Commission (CRTC) announced a decision requiring certain streaming providers to allocate 5% of their revenue to funds supporting the production of Canadian content. This obligation, part of the implementation process for the Online Streaming Act, aims to generate $200 million CAD annually, primarily from U.S. suppliers.

Despite being required to contribute, U.S. providers would generally be ineligible to access these funds due to discriminatory qualifying factors.

The Computer & Communications Industry Association (CCIA) has previously criticized Canada's approach through a white paper, arguing that the Online Streaming Act violates the U.S.-Mexico-Canada Free Trade Agreement (USMCA). The CCIA has advocated for digital trade rules that strengthen the global economy for over 50 years.

CCIA Vice President of Digital Trade Jonathan McHale commented: “Through their significant investments, U.S. suppliers greatly facilitate the distribution of Canadian content in Canada, the United States, and beyond, opening global markets up to Canadian artists and creators. Thus, they already meet the CRTC’s goal of helping to promote the production of Canadian content.”

He added: “Punishing suppliers of online content with hefty additional funding obligations, 5% of Canadian revenues, is both onerous and unnecessary given the vitality of the Canadian content market. In fact, as a requirement is likely to increase prices for Canadian consumers, it could have the opposite effect of what was intended.”

McHale further stated: “By mandating contributions into a fund U.S. suppliers cannot access and which discriminates against non-Canadian content, the CRTC’s decision is inconsistent with trade commitments Canada made under USMCA. We urge Canada to reconsider this approach and instead reaffirm its U.S. trade commitments.”