March 8, 2010 / 8:23 PM / 8 years ago seeks Canadian foothold

TORONTO (Hollywood Reporter) - Efforts to pry open the culturally sensitive Canadian media industry to more foreign ownership took a new turn Monday when sought federal approval to start a new business in Canada.

A box from is pictured on the porch of a house in Golden, Colorado July 23, 2008 file photo. REUTERS/Rick Wilking

The application to Heritage Canada, if approved by the Ottawa, would see the U.S. online retailer establish its own fulfillment business here after using Canada Post for product delivery since 2002 to serve a Canadian version of its U.S. website,

Amazon is seeking its own physical base in Canada, including offices and warehouses, a move that must be weighed by the feds under the Investment Canada Act. Establishing a physical presence north of the border would come with strings attached, including measures to support the Canadian book trade to indicate “net benefits” to the local industry from operating in the country.

The Canadian Booksellers Association, representing local book retailers, in 2002 failed in a judicial bid to stop from operating in Canada.

Ottawa ruled that the Investment Canada Act did not apply to, despite existing laws aiming to protect the Canadian book industry from foreign competition, as long as it operated without a physical presence in the country.

Beyond book-selling, Canada also regulates foreign investment in the phone and broadcasting sectors, both of which face changing foreign ownership rules and landscapes as well. The conservative government last week signaled it would look to open the floodgates to more foreign investment in these areas.

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