The Canadian government is banning the use of Amazon’s video streaming service, a move that has been widely denounced as a direct attack on Canada’s independent spyglass makers.
The ban, which came into effect Monday, comes amid a broader clampdown on video streaming in Canada that also includes a blanket ban on video ads and streaming music.
A report released Wednesday by the Parliamentary Budget Officer said the move would cost Canadian video streaming companies millions of dollars over the next three years.
The ban comes as the country’s spy glass makers have been facing an uncertain future.
The Parliamentary Budget Office said the ban will “immediately” add $3 million to the total cost of developing new video content for Canadians to watch.
The report said the total loss for spyglass manufacturers could exceed $40 million over the three-year period.
The Globe and Mail asked Prime Minister Stephen Harper’s office whether the ban would affect the production of new videos for Canadians, which would then be streamed to other Canadians via streaming services.
A spokesperson for the PMO did not immediately respond to requests for comment.
The PMO’s report also noted that the government is already restricting access to some new streaming video services, including the Google-owned YouTube and Netflix, while it also seeks to restrict access to certain foreign streaming services like Amazon Video.
Canada is not alone in banning the sale of Amazon video streaming services, with other countries including the United States and Britain also banning the sales of the service.
The U.K. also recently launched a crackdown on Amazon Video streaming services in a bid to crack down on pirated content.
The spyglass ban comes amid growing concern that Canada’s video-streaming ban could lead to the demise of the industry, and is expected to cause widespread damage to the industry’s reputation and business.
In a letter to Prime Minister Justin Trudeau earlier this month, the Federation of Canadian Industry (FCI) and the Canadian International Trade Council (CITC) urged the government to “take immediate action” to end the ban on Amazon video.
In the letter, the FCI and the CITC urged the PM to “establish a public process that ensures that the commercial exploitation of this technology is not allowed.”
The FCI also noted the ban is being implemented despite the fact that Canada is “one of the few countries” to have an explicit ban on the sale or possession of spyglass products.
The report comes at a time when Canadian spyglass maker BSI has been forced to suspend production of its spyglass product, after the spyglass company discovered it could not sell the product in Canada.BSI said Monday that it would halt production of the spyglasses for “a variety of reasons,” including a “growing market” in China and a shortage of spyglasses available in Canada due to a blanket government ban.
The company said it would seek legal counsel and seek to appeal the ban to the courts.