The traditionally strong culture of domestic ownership of much of Canada’s media could be in for a shake-up if Amazon.com earns federal approval to start a new business in the country.

It has applied to Heritage Canada for a licence to operate in the country which, if approved, would see the U.S. online retailer establish its own fulfillment business there.

Since 2002, Amazon has used Canada Post for product delivery to service a Amazon.ca, a Canadian version of its U.S. website.

Federal approval is needed if Amazon is to be able to establish a physical base in Canada, including offices and warehouses. Establishing a physical presence there would oblige Amazon to adopt measures to support the Canadian book trade to indicate “net benefits” to the local industry from Amazon.com operating in the country.

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

The Canadian authorities ruled that the Investment Canada Act did not apply to Amazon.com, 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 its telecoms and broadcasting sectors, both of which also face changing foreign ownership rules and landscapes.

In March 2010, the conservative government signaled it would look to facilitate more foreign investment in these areas.