logo
Global streamers fight CRTC's rule requiring them to fund Canadian content

Global streamers fight CRTC's rule requiring them to fund Canadian content

CTV News3 days ago

A person browses a television menu showing icons for streaming services Netflix and Amazon Prime in a photo illustration made in Toronto on Friday, March 22, 2024. THE CANADIAN PRESS/Giordano Ciampini
OTTAWA — Some of the world's biggest streaming companies will argue in court on Monday that they shouldn't have to make CRTC-ordered financial contributions to Canadian content and news.
The companies are fighting an order from the federal broadcast regulator that says they must pay five per cent of their annual Canadian revenues to funds devoted to producing Canadian content, including local TV news.
The case, which consolidates several appeals by streamers, will be heard by the Federal Court of Appeal in Toronto.
Apple, Amazon and Spotify are fighting the CRTC's 2024 order. Motion Picture Association-Canada, which represents such companies as Netflix and Paramount, is challenging a section of the CRTC's order requiring them to contribute to local news.
In December, the court put a pause on the payments — estimated to be at least $1.25 million annually per company. Amazon, Apple and Spotify had argued that if they made the payments and then won the appeal and overturned the CRTC order, they wouldn't be able to recover the money.
In court documents, the streamers put forward a long list of arguments on why they shouldn't have to pay, including technical points regarding the CRTC's powers under the Broadcasting Act.
Spotify argued that the contribution requirement amounts to a tax, which the CRTC doesn't have the authority to impose. The music streamer also took issue with the CRTC requiring the payments without first deciding how it will define Canadian content.
Amazon argued the federal cabinet specified the CRTC's requirements have to be 'equitable.'
It said the contribution requirement is 'inequitable because it applies only to foreign online undertakings and only to such undertakings with more than $25 million in annual Canadian broadcasting revenues.'
Apple also said the regulator 'acted prematurely' and argued the CRTC didn't consider whether the order was 'equitable.' It pointed out Apple is required to contribute five per cent, while radio stations must only pay 0.5 per cent — and streamers don't have the same access to the funds into which they pay.
The CRTC imposes different rules on Canadian content contributions from traditional media players. It requires large English-language broadcasters to contribute 30 per cent of revenues to Canadian programming.
Motion Picture Association—Canada is only challenging one aspect of the CRTC's order — the part requiring companies to contribute 1.5 per cent of revenues to a fund for local news on independent TV stations.
It said in court documents that none of the streamers 'has any connection to news production' and argued the CRTC doesn't have the authority to require them to fund news.
'What the CRTC did, erroneously, is purport to justify the … contribution simply on the basis that local news is important and local news operations provided by independent television stations are short of money,' it said.
'That is a reason why news should be funded by someone, but is devoid of any analysis, legal or factual, as to why it is equitable for foreign online undertakings to fund Canadian news production.'
In its response, the Canadian Association of Broadcasters said the CRTC has wide authority under the Broadcasting Act. It argued streamers have contributed to the funding crisis facing local news.
'While the industry was once dominated by traditional television and radio services, those services are now in decline, as Canadians increasingly turn to online streaming services,' the broadcasters said.
'For decades, traditional broadcasting undertakings have supported the production of Canadian content through a complex array of CRTC-directed measures … By contrast, online undertakings have not been required to provide any financial support to the Canadian broadcasting system, despite operating here for well over a decade.'
A submission from the federal government in defence of the CRTC argued the regulator was within its rights to order the payments.
'The orders challenged in these proceedings … are a valid exercise of the Canadian Radio-television and Telecommunications Commission's regulatory powers. These orders seek to remedy the inequity that has resulted from the ascendance of online streaming giants like the Appellants,' the office of the attorney general said.
'Online undertakings have greatly profited from their access to Canadian audiences, without any corresponding obligation to make meaningful contributions supporting Canadian programming and creators — an obligation that has long been imposed on traditional domestic broadcasters.'
The government said that if the streamers get their way, that would preserve 'an inequitable circumstance in which domestic broadcasters — operating in an industry under economic strain — shoulder a disproportionate regulatory burden.'
'This result would be plainly out of step with the policy aims of Parliament' and cabinet, it added.
The court hearing comes as trade tensions between the U.S. and Canada have cast a shadow over the CRTC's attempts to regulate online streamers.
The regulator launched a suite of proceedings and hearings as part of its implementation of the Online Streaming Act, legislation that in 2023 updated the Broadcasting Act to set up the CRTC to regulate streaming companies.
In January, as U.S. President Donald Trump was inaugurated for his second term, groups representing U.S. businesses and big tech companies warned the CRTC that its efforts to modernize Canadian content rules could worsen trade relations and lead to retaliation.
Then, as the CRTC launched its hearing on modernizing the definition of Canadian content in May, Netflix, Paramount and Apple cancelled their individual appearances.
While the companies didn't provide a reason, the move came shortly after Trump threatened to impose a tariff of up to 100 per cent on movies made outside the United States. Foreign streamers have long pointed to their existing spending in Canada in response to calls to bring them into the regulated system.
Anja Karadeglija, The Canadian Press

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

BC Ferries says state-owned Chinese builder clear choice for new vessels despite trade war
BC Ferries says state-owned Chinese builder clear choice for new vessels despite trade war

Globe and Mail

time27 minutes ago

  • Globe and Mail

BC Ferries says state-owned Chinese builder clear choice for new vessels despite trade war

BC Ferries is buying four massive ferries from a Chinese state-owned shipyard to run routes to and from Vancouver Island, saying that bidder was the clear choice despite China being locked in a trade war with Canada. The publicly owned ferry operator announced this week that China Merchants Industry Weihai Shipyards had won the right to build these vessels and that no Canadian companies stepped up, mostly because they are too busy fulfilling federal military contracts. BC Ferries – one of the largest and most complex ferry systems in the world – would not disclose the value of the shipbuilding contract, stating the need to protect its ability negotiate on future deals to build three more boats in the coming decade. British Columbia's Transportation Minister Mike Farnworth was disappointed the contract bypassed local shipyards, but acknowledged BC Ferries 'made a business decision.' Still, he called on BC Ferries to be transparent about the costs of the overhaul of its aging fleet, but noted he had no power to compel the company, since it was privatized 20 years ago. The company has one single voting share held by the B.C. Ferry Authority, which is owned by the province. 'At the end of the day, people will want to know how much you're spending and that would be regardless of where they were built, whether they're built here or whether they were built elsewhere,' Mr. Farnworth said in an interview Wednesday. 'So I expect that will come up.' An aging fleet, growing demand, spiralling costs: Rough seas for BC Ferries When The Globe and Mail reported earlier this year on BC Ferries applying to its provincial regulator to approve its bid for five new vessels, officials confirmed those ships would total more than $1-billion. The regulator ultimately approved only four of the five ships being built and BC Ferries CEO Nicolas Jimenez said this week the new contract fits within its approved budget. Mr. Jimenez also said the current bilateral tensions played no role in the shipbuilding decision, adding his primary focus was getting the province a good deal. 'Customers expect us to go source the best possible deal, the highest quality, a yard that provides safety, a yard that provides the highest in standards when it comes to oversight and labour, and to get the best cost,' he said at a news conference Tuesday. 'When it comes to things like trade policy, industrial policy, geopolitics, we would really defer that to the federal and provincial governments and expect them to manage and work those issues.' BC Ferries has said its fleet is already running at capacity at peak travel times, and with population growth, the service is only going to get worse for users, including for commercial traffic that is integral to the province's supply chains. It said Weihai Shipyards has built vessels for Canada's Marine Atlantic ferry company and other operators such as Corsica Linea and Brittany Ferries of France. Mr. Jimenez added China's tariffs don't affect the import of these types of ships into Canada. Bruce Williams, CEO of the Greater Victoria Chamber of Commerce, said BC Ferries did its due diligence during its years-long procurement process. BC Ferries pushes for swift approval of $1-billion shipbuilding contract amid tariff threats Mr. Farnworth said he had no national security concerns with a state-owned Chinese shipyard constructing these vessels and noted Ottawa recently committed to high-level talks with China to thaw the trade dispute. B.C.'s and Canada's second largest international trading partners are both China, yet B.C. Premier David Eby's recent 10-day trade mission included Japan, South Korea and Malaysia while excluding Asia's biggest economy. The Opposition B.C. Conservatives have called on Mr. Eby's government to cancel the contract that was announced on Tuesday, while accusing him of abandoning Canadian workers. When the request for proposals was issued last fall, B.C. shipbuilder Seaspan said in a statement that 'Canadian shipyards and their supply chains cannot compete with low-wage countries that have lower employment standards, lower environmental standards and lower safety standards than Canada and B.C.' Seaspan said in a statement Tuesday that it was currently building ships for the Royal Canadian Navy and the Canadian Coast Guard at its North Vancouver shipyard. The B.C. Federation of Labour, which represents roughly half a million union members in the province, issued a strong rebuke of a contract it labelled a 'colossal mistake.' 'According to media reports, BC Ferries defended itself by saying 60% of major ships in the world are built in China,' the organization posted on social media. 'Wrong-headed decisions like this are the reason why.' With a report from The Canadian Press

Windsor Assembly returning to regular production ahead of schedule
Windsor Assembly returning to regular production ahead of schedule

CTV News

time29 minutes ago

  • CTV News

Windsor Assembly returning to regular production ahead of schedule

Windsor Assembly Plant seen in Windsor, Ont. on April 3, 2025. (Chris Campbell/CTV News Windsor) Two shift production is set to return to Windsor Assembly sooner than expected, according to the union representing workers at the Stellantis plant. On Wednesday, Unifor Local 444 updated its members through its social media pages full two shift operation would return on June 23. The automaker had put the workforce on alternating layoffs, in part, pointing to the economic uncertainty created by new U.S. tariffs brought in by the White House. All workers weren't set to return to full production until June 30, according to a union schedule. CTV News has reached out to Stellantis for comment.

Carney's G7 invitation list continues to expand, despite concerns about India's presence
Carney's G7 invitation list continues to expand, despite concerns about India's presence

Globe and Mail

time42 minutes ago

  • Globe and Mail

Carney's G7 invitation list continues to expand, despite concerns about India's presence

Prime Minister Mark Carney continues to expand the invitation list for the coming Group of Seven summit, as he seeks to build new economic partnerships, though some of his caucus members are raising concerns about India's presence at the table. The Globe and Mail has learned that Saudi Arabia Crown Prince Mohammed bin Salman will not attend next week's G7 gathering in Kananaskis, Alta. – a development that may ease some of the tension inside Mr. Carney's Liberal caucus, as some MPs were also upset about Mr. bin Salman's invitation. The MPs say India and Saudi Arabia are in violation of Mr. Carney's own G7 priority of 'countering foreign interference and transnational crime,' and therefore should not have been invited. A list of attendants of the June 15-17 summit, issued Wednesday by the Prime Minister's Office, includes the leaders of Brazil, South Africa, India, the United Arab Emirates, South Korea, Mexico, Ukraine and Australia; the presidents of the European Commission and World Bank; and the NATO secretary-general. More leaders may still be confirmed. The members of the G7, an informal grouping of some of the world's most advanced economies, are Canada, France, Germany, Italy, Japan, Britain and the United States. The country hosting each year's summit often invites non-member states to attend in recognition of other major economies and the need for global collaboration on major policy priorities. Mr. Carney announced Wednesday that, ahead of the summit, British Prime Minister Keir Starmer will come to Ottawa for bilateral talks. 'Prime Minister Starmer's visit will strengthen the long-standing economic and security partnership between the two nations – and deliver growth and prosperity for our peoples,' Mr. Carney's office said in a statement. The two men previously met in March, on Mr. Carney's first trip abroad as Prime Minister. Liberal MP Sukh Dhaliwal criticizes Modi's G7 invitation in meeting with Carney The G7 summit will mark U.S. President Donald Trump's first visit to Canada since his re-election and imposition of tariffs on this country. Ottawa and Washington continue to negotiate toward a new trade and security deal. Mr. Carney has said the priorities guiding the summit are 'anchored' in building stronger economies. He will be seeking co-ordinated action in three areas: 'protecting our communities and the world,' 'building energy security and accelerating digital transitions,' and securing economic partnerships. Under that first heading, he specifically described tackling foreign interference and transnational crime – a priority that Liberal MPs said Wednesday is out of step with inviting Indian Prime Minister Narendra Modi and Mr. bin Salman. In 2023, Hardeep Singh Nijjar, a Sikh-Canadian advocate for the carving out of an independent state of Khalistan in India, was killed in B.C. Mr. Carney's predecessor, Justin Trudeau, publicly accused India of orchestrating the slaying, though New Delhi has denied the allegation. Four Indian nationals have been charged in the case. The foreign-interference inquiry also cited instances of Indian-state meddling in Canadian democratic processes. Opinion: Carney should know it's way too soon to invite Modi to Canada In 2018, Ottawa imposed sanctions on 17 Saudis for the slaying of dissident journalist Jamal Khashoggi at the Saudi consulate in Turkey. U.S. media later reported that the CIA believes Mr. bin Salman, the Saudi Crown Prince, ordered Mr. Khashoggi's killing – contradicting Riyadh's assertion that he was not involved. Gurbux Saini, a B.C. Liberal MP, said the G7 invitations of Mr. Modi and Mr. bin Salman undermine Canada's reputation. 'It is a damaging thing because we have been known in the world as caring and compassionate people who love human rights, and this is something the Prime Minister is aware of and it has been brought to his attention,' Mr. Saini said on his way into the party's weekly caucus meeting Wednesday. Mr. Carney did not answer questions from reporters Wednesday about the invite to Mr. bin Salman. But last week, Mr. Carney said it made sense for India to be at the table, as it is one of the largest economies in the world and central to global supply chains. He wouldn't comment on the allegations levelled by his predecessor against India, saying 'the rule of law is proceeding as it should,' and that he wasn't going to comment. But he said the invitation to Mr. Modi was extended in the context of continuing dialogue between law enforcement in both countries. Some MPs said Wednesday that, while they understand the imperative of engaging economically and diplomatically with India and Saudi Arabia, there has to be a wider discussion of the issues. 'These are important economic relationships to have,' said Karina Gould, who ran against Mr. Carney for Liberal leadership earlier this year. 'But that being said, as Canada, we also have certain values that are important to us, and when it comes to human rights, when it comes to standing up and protecting Canadian citizens on our soil, but also ensuring that freedom exists around the world, that that's a message that we should be passing along to both Prime Minister Modi as well as the Crown Prince.'

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store