The Quebec government's ambitious plan to impose French-language content requirements on streaming platforms like Netflix, YouTube, Spotify and Apple is setting the stage for a potential constitutional showdown that could determine whether these digital giants remain in the province or withdraw their services entirely.
Massive Burden on Streaming Platforms
Known as Bill 109, the proposed legislation would grant Quebec authorities the power to set specific quotas for French-language cultural content that digital platforms must offer to their subscribers. According to Allen Mendelsohn, a McGill University lecturer in internet law, while some requirements like default French language settings are manageable, content quotas could fundamentally disrupt how streaming services operate.
The legislation would allow Quebec to determine the quantity or proportion of original French-language cultural content that platforms must provide, with specific targets to be established later by the government. Mendelsohn warns that if the government mandates high percentages, streaming services could face difficult choices.
If the quota reaches 50 percent, that represents a massive burden for these companies, Mendelsohn explained. The practical implication could force platforms like Netflix to remove substantial amounts of English-language programming if sufficient French content isn't available, potentially making their services less attractive to consumers.
Constitutional Questions Loom Large
The proposed law faces significant constitutional hurdles, as internet regulation has traditionally fallen under federal jurisdiction. Mendelsohn points to a 2021 Quebec Court of Appeal decision that struck down a provincial law requiring internet service providers to block gambling websites, ruling it exceeded provincial authority.
Culture Minister Mathieu Lacombe defends the legislation, arguing Quebec has jurisdiction over language and culture matters. However, the bill conflicts with the federal Online Streaming Act passed in 2023, which already regulates the same streaming organizations at the national level.
Streaming companies have highlighted this duplication in their briefs to the National Assembly committee studying Bill 109. Netflix specifically warned that Quebec's legislation risks creating multiple or contradictory obligations that would harm regulatory coherence and Canada's goal of a single national framework for online streaming.
Potential Market Exit Scenario
The most dramatic potential consequence of Bill 109 involves streaming platforms possibly withdrawing from the Quebec market rather than complying with the new requirements. While no company has publicly threatened to leave, Mendelsohn suggests the possibility exists, particularly for smaller streaming services.
I'm skeptical that big streamers would leave Quebec at this point in time, but I can envisage it happening, Mendelsohn said. He noted that smaller companies might decide the compliance costs outweigh the benefits of serving Quebec's market.
The legislation does include an escape hatch that would allow the government to negotiate substitute measures with streamers - essentially side deals that could exempt platforms from the law. This approach mirrors the agreement Google reached with the federal government to avoid the Online News Act by contributing $100 million annually to Canadian news organizations.
Mendelsohn predicts that larger streaming companies would likely mount legal challenges and attempt to negotiate such arrangements before considering withdrawal from Quebec. The negative public relations impact of leaving a market to avoid local obligations would be significant, he noted.
Even though Quebec represents a relatively small portion of the global streaming audience, its role in promoting French as one of Canada's official languages gives the province disproportionate influence in shaping content rules and cultural protection policies that could have broader implications for digital streaming services operating across the country.
