Carney government orders review of online funding decision that has annoyed the U.S.

“The reality is the sector is one that’s been suffering, has been suffering for years. We introduced Bill C-11, as you recall, to make sure that people were paying their fair share. Since then, there’s been litigations that have frozen funds that … are intended to support the sector, and haven’t, and today we’re impatient to make sure that that gets out,” Miller told reporters.

“We don’t agree entirely with the (Canadian Radio-Television and Telecommunications) decision. I will be directing the CRTC to review that decision, and from now until then, we’ll be actually assuming that role and making sure that people actually get the money they’ve been asking for.”

Miller was referring to the Online Streaming Act, a contentious Trudeau-era law that sought to subject streaming titans like Netflix and Disney Plus to the same regulations that already apply to traditional television and radio broadcasters in Canada. That meant streaming services, like broadcasters, would have to contribute to the funding, production and promotion of Canadian content under a regime overseen by the CRTC.

The law was opposed by streaming platforms at the time, and by U.S. trade groups which felt the legislation unfairly discriminated against American companies.

The CRTC, in its efforts to implement the act, revealed last month that major online streamers would have to pony up 15 per cent of their Canadian revenues to support the creation of Canadian film and television.

The figure is triple what the CRTC initially announced in 2024, an amount that has faced legal challenges from companies like Amazon, Apple and Spotify.

Asked Wednesday whether the Liberals’ decision was tied to U.S. President Donald Trump’s plan to impose additional tariffs on Canada and other countries following an investigation into forced labour in supply chains, Miller acknowledged the policy was a source of friction.

“It’s no secret to anyone that’s been paying any attention to this, that the (United States trade representative) has identified these issues as a trade issue. It would be disingenuous to suggest that this is the single issue,” Miller said.

Both Miller and Prime Minister Mark Carney refused Wednesday to frame the move as a concession to the Trump administration, with the prime minister telling reporters that his government’s decision is “another step to reinforce affordability for Canadians” by ensuring costs aren’t passed down to consumers.

Last summer, the Carney government rescinded Canada’s Digital Services Tax — another controversial policy targeting big tech giants, including a number of American companies — to preserve trade negotiations with the U.S.

U.S. Ambassador to Canada Pete Hoekstra slammed the CRTC’s new contribution rules in May, stating on social media that the decision was “targeting and taxing U.S. companies, putting up new, discriminatory trade barriers, and worsening the investment climate for American businesses.”

The law has also drawn the ire of U.S. trade representative Jamieson Greer, with whom Canada-U.S. Trade Minister Dominic LeBlanc met Tuesday. Greer signalled late last year that any successful review of the Canada-United States-Mexico Agreement would be contingent on the resolution of a number of issues, including addressing the impact of the streaming law on U.S. companies.

Last week, the Conservatives called on Carney’s cabinet to reject the CRTC’s contribution hike, in part because they feared Canadians would ultimately foot the bill. The government said in response that it did not have the power to directly intervene.

Conservative MP Rachael Thomas, who led that charge, said Wednesday that the Liberals were finally admitting that the Tories were right.

“Let’s not ignore the larger issue at hand, and that is this: the Liberals all too often put regulations in place, which drive up the cost for the consumer, and then, because of that added financial burden, they offer a subsidy, which again results in another tax, having to take money from the consumer once again, and on and on it goes,” Thomas said.

“So until the government actually makes a decision to remove the regulatory burden to begin with, it will continue to impose that additional cost to Canadians.”

Bloc Québécois Leader Yves-François Blanchet, however, tore into Carney in the House of Commons, saying the prime minister was “capitulating” to the U.S. by sacrificing needed funding.

“Does the prime minister know that he’s supposed to defend our culture and not barter it away?” Blanchet said during question period.

Carney said he was “defending everyday Canadians” and, by announcing the new funds, was maintaining investments in Canadian and Quebec culture.