A Republican has introduced a new bill to Congress aimed at the Canadian Online Streaming Act.
This bill would trigger an investigation by the office of the United States Trade Representative into Canadian legislation relating to foreign platforms, the office of Representative Lloyd Smucker said in a press release.
It specifies that if the Trade Representative believes that the implementation of the Canadian law is discriminatory or constitutes a burden on American trade, the cabinet would be responsible for taking “necessary retaliatory measures”.
Under the Online Streaming Act, the Canadian Radio-television and Telecommunications Commission (CRTC) ordered large foreign platforms to devote 5% of annual contribution revenues to certain funds financing the production of Canadian content.
This made the bill a target in trade negotiations with the United States.
U.S. Trade Representative Jamieson Greer criticized the impact of the Streaming Act and the Online News Act on U.S. digital service providers ahead of a review of the Canada-U.S.-Mexico trade deal.
“Canada’s inequitable policies disadvantage American businesses, creators and workers,” Mr. Smucker said in the release. This bill would protect America’s creators and businesses while fostering mutually beneficial competition and innovation.”
The release included statements of support from groups representing large online streaming services and technology companies.
Graham Davies, CEO of the Digital Media Association, which represents on-demand music platforms, said the implementation of the Online Streaming Act “continues to be a major concern for our members, as it discriminates against non-Canadian companies, and particularly American companies, jeopardizes investments and imposes excessive new burdens on streaming music services.”
Rodrigo Balbontin of the Information Technology and Innovation Foundation, which has financial backing from major tech companies, said Canada’s platform law sets a “worrying precedent” internationally.
“If nothing is done to counter it, American broadcast platforms could face an avalanche of protectionist digital policies in foreign markets, designed to extract revenues from them and favor non-American content,” argued Mr. Balbontin.
Earlier this week, Culture Minister Marc Miller said the government wants the Online Streaming Act and the Online News Act — which requires Meta and Google to compensate media outlets for disseminating their content — to be effective.
“It’s about ensuring that everyone pays their fair share,” he argued.
