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Apple, Amazon and Spotify challenging CRTC's Canadian content rules in court this week

Apple, Amazon and Spotify challenging CRTC's Canadian content rules in court this week

National Post5 hours ago

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.
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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.
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The case, which consolidates several appeals by streamers, will be heard by the Federal Court of Appeal in Toronto.
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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.
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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.
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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.
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Amazon argued the federal cabinet specified the CRTC's requirements have to be 'equitable.'
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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.'
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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.
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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.

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