Yep, it has to do with Canadian law and the desire to retain a Canadian Cultural identity (thus we protect our Cultural industries). I don't think that applies any more though--or at least since 2010 when Amazon was permitted to open up a local shipping distribution center by essentially buying out our cultural protection laws with a couple tens of million (I think it was 20 mil).

Books were the first step, and if you notice other departments have started to be available on our .ca-- I assume it's just a logistics issue before they establish a near identical system.

In some ways it's kind of sad, because I do think it will hurt the Canadian arts in the same way Canadian film and television has become second-rate American entertainment-- but the damage is done and with the way things are set up and have been established over the last 20 years, it's inescapable.