The government’s bad run of digital policy choices that led to blocked news links on Facebook and Instagram, ongoing litigation over mandated streaming payments, and the recent cancellation of the digital services tax, has paved the way for another costly loss. Last fall, the Canadian government announced the conclusion of its national security review of TikTok and arrived at a curious plan: ban the company from operating in Canada but leave the app itself untouched. The decision raised concerns about weakening privacy enforcement as the Privacy Commissioner of Canada acknowledged that it is easier to compel documents and support investigations if the company is in Canada (the results of a Privacy Commissioner investigation into TikTok have still not been released).
Archive for July, 2025
The Law Bytes Podcast, Episode 239: The Rise and Fall of Canada’s Digital Services Tax
Two days after U.S. President Donald Trump threatened to suspend all trade negotiations with Canada unless it rescinded the digital services tax, Canadian Finance Minister François-Philippe Champagne announced that the government was rescinding the tax. The rise and fall of the Canadian DST was marked by repeated warnings of potential U.S. retaliation, the Canadian government’s dismissal of the risks, and no shortage of confusion about the tax itself.
There have been multiple Law Bytes podcast episodes on the DST over the years, but this episode takes stock of its rise and fall. The episode examines what the DST is, what just happened, and what it means for the future of digital policy in Canada.
Canada’s DST Debacle a Case Study of Digital Strategy Trouble
My Globe and Mail op-ed opens by noting that after years of dismissing the warnings of likely retaliation, the Canadian government caved to U.S. pressure earlier this week as it cancelled the digital services tax. Faced with the U.S. suspension of trade negotiations, Finance Minister François-Philippe Champagne announced that the government would rescind the legislation that created it.