The House of Commons voted 193-134 on Tuesday to defeat a Conservative motion seeking to stop a CRTC-ordered increase in fees charged to foreign video streaming services, clearing the way for companies such as Netflix and Disney+ to face charges rising from 5% to 15% of their Canadian revenues.Conservative MP Rachael Thomas said the higher fees would ultimately be borne by Canadian consumers through increased subscription costs.“Who will pay for this?” asked Thomas, who sponsored the motion. “Every dollar of this tax will ultimately be passed on to consumers who are already struggling under the weight of rising costs under current government policy.”Blacklock's Reporter said the motion called on the Liberal government to use its authority under the Broadcasting Act to overturn a May 21 Canadian Radio-television and Telecommunications Commission order that triples the levy imposed on streaming platforms operating in Canada.The CRTC first introduced a 5% charge on streaming services in 2024 under Bill C-11, legislation that expanded federal broadcasting regulations to online content platforms.Thomas argued the increased charge would make Canada a less attractive market for international companies.“That 15% tax puts Canada among the most expensive jurisdictions to do business with streaming companies,” she told MPs. “That sends a dangerous message to companies that Canada is becoming more costly, less predictable and not worth spending in because it is not competitive.”Bloc Québécois MPs opposed the Conservative motion, arguing foreign streaming services should contribute more to Canada's broadcasting sector.Bloc MP Martin Champoux dismissed the proposal as “completely ridiculous.”“Basically what this motion is saying is that if people want to watch American shows, even if it means that Québec and Canadian shows disappear, that is just fine,” said Champoux. “It is fine for American streaming giants to come here and make millions if not billions of dollars in Québec and Canada without contributing to our broadcasting system.”.Liberal MP Kevin Lamoureux, parliamentary secretary to the Government House Leader, said additional support for Canadian content creators and broadcasters was necessary to maintain a competitive domestic industry.“If it was up to the Conservatives they would devastate that industry,” said Lamoureux.“It is not about good public policy. It is about how they can take an issue and generate thousands of emails because people get angry.”Lamoureux said the government was seeking to create a more level competitive environment between traditional broadcasters and online streaming platforms.“We want to see a level playing field because we know our culture, heritage and arts industry can survive and do exceptionally well under a level playing field,” he said.Canadian broadcasters have long argued that foreign streaming platforms enjoy regulatory advantages while competing directly for audiences and advertising dollars.During Senate committee hearings on Bill C-11 in 2022, Troy Reeb, then executive vice-president of Corus Entertainment, warned lawmakers that traditional broadcasters faced increasing pressure from U.S.-based streaming services.“The future of an entire Canadian industry is hanging in the balance,” Reeb testified.“Netflix and Amazon compete with us for audiences and are now taking more of it than ever. The same U.S. studios that used to license us content for Canadian television are now going around Canadian broadcasters to take it directly to Canadians themselves.”
