Ottawa has ordered Canada’s telecom regulator to review a controversial policy forcing foreign streamers to devote more of their revenues to Canadian content, after criticism that the decision constituted a potential trade irritant with the United States.

In late May, the CRTC implemented a new framework which tripled the contribution that streamers would be required to dedicate from their Canadian revenues to funding Canadian and Indigenous programming, from 5 per cent to 15 per cent. That evening, foreign streamers – which were already fighting the lower investment requirement in Canadian court – said the new framework directly violated Canada’s obligations under the U.S.-Mexico-Canada Agreement. The trilateral trade pact is up for a review on July 1.

After the CRTC published its new policy last month, experts said the decision was likely to further provoke U.S. lawmakers as the Trump administration continues on its protectionist course.

The decision was also criticized by Canadian broadcasting organizations, which said the policy reinforced an unfair advantage for streamers, given that traditional broadcasters are required to devote 25 per cent of revenues to Canadian content and funds.

On Monday, the Department of Canadian Heritage said it is requiring the Canadian Radio-television and Telecommunications Commission to review the framework, without directly mentioning trade issues.