Canada’s Streaming Tax Is Angering US Lawmakers — and a Fight May Be Coming

A Pennsylvania congressman is continuing to push back against Ottawa’s streaming rules, calling them unfair to American companies.

Republican Lloyd Smucker took to X on Monday to warn that a top Canadian regulator confirmed new rules under Canada’s Online Streaming Act are coming soon. “Canada is doubling down on discriminatory regulations targeting American streaming services and digital creators,” Smucker wrote.

The Online Streaming Act (it was known as Bill C-11), enforced by the CRTC, requires U.S.-based streaming platforms to pay into funding that supports Canadian content.

To fight back, Smucker introduced the Protecting American Streaming and Innovation Act back in March. The bill would kick off a federal investigation into whether Canada’s policies unfairly burden American companies (mainly big tech), and if so, direct trade officials to retaliate.

“Digital trade plays a critical role in America’s economy, supporting high-paying jobs and exporting American values,” Smucker said. “Canada’s unfair policies stack the deck against U.S. companies, creators, and workers.”

Industry groups have lined up behind the bill. The Motion Picture Association’s Charles Rivkin said Canada’s law “disadvantages American companies and undermines competitiveness by requiring streaming companies to subsidize and promote Canadian content over their own productions.”

The Digital Media Association warned the rules “discriminate against non-Canadian, and especially U.S. companies,” while the Information Technology and Innovation Foundation cautioned that if left unchallenged, American platforms “may face a barrage of protectionist digital policies in foreign markets.”

Smucker said he plans to keep fighting, adding he will continue “to defend free expression, innovation, and American jobs.”

The likes of Amazon, Apple Music, Spotify, and YouTube are all against the Online Streaming Act, which will require streaming platforms (both video and music) that make at least $25 million in annual Canadian revenue to pay 5% to national funds. You can bet any tax will be passed onto Canadian consumers.

Back in 2023, Bell warned Ottawa that Canadian broadcasters were on the brink of collapse due to foreign streaming services, which Canadians can easily get direct access to and bypass cable TV companies. Bell does offer its own streaming service Crave which for now, is the only way to access HBO in Canada.

As it stands, big tech companies such as Apple and Meta are also against Ottawa’s proposed Bill C-22, which aims to build backdoors into tech encryption to allow police to access data from criminals.