Digital policies did not play a prominent role in the last election given the intense focus on the Canada-U.S. relationship. Prime Minister Mark Carney started as a bit of a blank slate on the issue, but over the past few months a trend has emerged as he distances himself from the Justin Trudeau approach with important shifts on telecom, taxation, and the regulation of artificial intelligence. Further, recent hints of an openness to re-considering the Online News Act and heightened pressure from the U.S. on the Online Streaming Act suggests that a full overhaul may be a possibility.

This week’s decision to let the CRTC’s decision on wholesale access to fibre broadband networks stand is a case in point. Last November, the Justin Trudeau-led government sent the CRTC’s initial ruling back to the Commission for reconsideration, noting that it “has concerns about future and ongoing investments in broadband infrastructure and services in Ontario and Quebec, including in rural, remote and Indigenous communities, and concerns that those investments could, if they are unprofitable, lead to a decline in quality and consumer choice in the retail Internet services market.” Nine months later, the CRTC came back with the roughly same ruling. That led to yet another request for a cabinet review but this time the government stood by the CRTC despite significant industry opposition. New leader, dramatically new approach.

The CRTC is example was preceded by the decision to eliminate the digital services tax. While the strategic approach seemed misguided – dropping the DST should have garnered more than just an agreement from the U.S. to return to the bargaining table – some noted at the time that perhaps Carney wasn’t a supporter of the DST and had few qualms with rescinding it. The tax had been a foundational part of the government’s campaign to “make web giants pay” but in a matter of 72 hours in late June it was gone.

The government has also shifted its approach on AI regulation. After months of supporting Bill C-27 and the EU-style AI regulatory approach, a new government brought a new minister and a new approach. Evan Solomon, the newly installed AI and Digital Innovation Minister, used his first public speech as minister to pledge that Canada would move away from “over-indexing on warnings and regulation” on AI. That too represents a significant shift in approach, particularly since Trudeau had embraced the EU style regulatory model.

Then there is the Online News Act and Online Streaming Act. When asked about the Online News Act this week, Carney seemed to suggest he was open to change, stating “this government is a big believer in the value of … local news and the importance of ensuring that that is disseminated as widely and as quickly as possible. So, we will look for all avenues to do that.” While that isn’t a clear commitment to change, it is far from an ironclad commitment to legislation is viewed by many to have done more harm than good. Further, reports indicate that the U.S. Congress is escalating pressure to rescind the Online Streaming Act, which may put that law on the chopping block, particularly if a court appeal strikes down elements of the bill or the CRTC’s implementation of the law puts the bill on the Trump radar screen.

The recalibration on digital policy is welcome but the Carney record is far from perfect. Indeed, Bill C-2, the border bill that buries dangerous, arguably unconstitutional lawful access provisions, raises a whole new series of concerns that were avoided for nearly ten years under Justin Trudeau. It is possible that the anti-privacy approach was seen as helping advance the Canada – U.S. economic relationship, in which case the urgency of the bill may cool come the fall. However, I wonder if the origin is actually government bureaucracy that saw an opportunity to dust off long desired policy measures in the hope that an inexperienced PMO and Minister would give it a pass without fully appreciating the long, controversial history of lawful access. The bill was clearly rushed with poorly drafted provisions and indefensible policy positions that have already sparked widespread criticism.

An aggressive bureaucracy might also explain the bizarre overreach on the government’s consultation on a proposed digital trade agreement with the European Union. Few will pay attention to the consultation, but the Canadian government put issues on the table that are not found in any digital trade agreements anywhere, including existing Canadian and European agreements. It is unlikely the Europeans are interested in establishing such a broad-based precedent as the consultation feels like a bureaucratic wish list rather than a serious proposal for an agreement. Given Carney’s surprising openness to reverse the digital policies of his predecessor, that wish list may be about to change as the government recalibrates its approach on a wide range of digital policies.