U.S. business and tech groups are cautioning the CRTC that its efforts to modernize Canadian content regulations may escalate trade tensions with the United States.
The Online Streaming Act, which requires foreign platforms to contribute to Canadian content, has sparked concerns of potential retaliation under the CUSMA trade deal.
One of the main sticking points will be a digital services tax that requires big tech companies to cough up a large retroactive payment in June.
This tax applies to companies that operate online marketplaces, online advertising services and social media platforms and sites that earn revenue from some sales of user data.
It imposes a three-per-cent levy on revenue that foreign tech giants generate from Canadian users.
With President Donald Trump threatening steep tariffs on Canadian imports, groups like the U.S. Chamber of Commerce argue the regulations could deter investment and harm the Canadian creative sector, urging caution in implementing new content ownership rules.
The heads of the biggest U.S. tech companies attended Donald Trump’s inauguration Monday.