Bill C-22 Risks Canadian AI Hub; Amazon Opens Logistics to Shopify Merchants
SHOP•Bill C-22's encryption backdoor mandates could drive Meta, Apple, and VPN providers Windscribe and NordVPN to relocate, jeopardizing Canada’s AI hub status and data center growth. On May 4, 2026, Amazon launched its Supply Chain Services for outside merchants, including Shopify stores, potentially diluting Shopify’s merchant logistics offering.
1. Bill C-22 Encryption Backdoor Impact
A coalition of tech giants, cybersecurity experts and VPN providers is warning that Bill C-22’s encryption backdoor requirements could force major platforms such as Meta and Apple to halt operations in Canada. VPN providers Windscribe and NordVPN have signaled plans to move infrastructure abroad, raising concerns over accelerated capital flight and undermining Canada’s ambition to remain a global hub for AI development and data center investment.
2. Amazon Supply Chain Service for Merchants
On May 4, 2026, Amazon launched its Supply Chain Services, opening its warehousing, trucking and delivery network to external merchants of any size. Procter & Gamble, 3M, Lands’ End and American Eagle are among the inaugural clients, and Shopify store owners may now rely on Amazon fulfillment, potentially eroding Shopify’s logistics advantage and consumer perception of supporting independent sellers.
