Canada will abandon efforts to compel foreign streamers to make mandatory financial contributions to the domestic entertainment industry, according to a court filing. The disclosure, in a letter dated July 17 to the federal Court of Appeal from a Canadian government lawyer, signals a reversal of nearly a decade of policy that required digital platforms to help fund domestic television and film. The letter notes that Prime Minister Mark Carney had ordered the broadcast regulator to re‑examine an order that would have forced services such as Netflix, Disney+ and Amazon Prime Video to allocate 15% of their Canadian revenue to local programming, up from a 5% threshold.

U.S. officials described the regulatory ruling as a new trade barrier Canada was looking to impose. The letter from Michael Morris, senior general counsel in litigation at Canada’s justice department, marks another retreat from the Carney‑led government.

This move removes a significant financial obligation from U.S. streamers and signals a shift toward a more open domestic market. It also reflects growing pressure from international partners to reduce perceived protectionism in Canada’s media sector. The decision is expected to be welcomed by streaming services that have long argued the contribution requirement was unfairly burdensome.

Overall, the policy change represents a notable easing of restrictions on foreign digital platforms, RCC hopes to foster a more competitive environment for Canadian content creators while maintaining a viable domestic industry.