Netflix, Disney, and other U.S. streaming companies have filed a legal challenge against last month’s CRTC decision to mandate foreign streaming services to pay 5% of Canadian revenues towards Canadian news and content.
The Motion Picture Association-Canada argues that the Canadian Radio-television and Telecommunications Commission exceeded its authority with this order and overlooked the significant investments these companies already make in Canada.
“Our members’ streaming services do not produce local news nor receive the legal privileges granted to Canadian broadcasters in exchange for such responsibilities,” said Wendy Noss, president of the association, representing Netflix, Walt Disney, Warner Bros. Discovery, and Paramount Global, in statement to the Wall Street Journal.
Numerous industry observers have said the changes to the Broadcasting Act could increase prices for Canadians, while also force streaming services to reconsider Canada.
The CRTC had planned for these payments to start in the 2024-25 broadcast year, with an estimated annual contribution of $200 million CAD to the broadcasting system. Foreign streamers argue that there is no justification for requiring them to fund local news production, a task they say should fall to Canadian-based services like Bell Media’s Crave.
Lawyers for the streaming and film companies said in their court filing the CRTC did not justify the requirement for foreign streamers to fund local television and radio newscasts.
The Federal Court of Appeal filing says the CRTC, “concluded, without evidence, that ‘there is a need to increase support for news production.'”
The streaming company lawyers argued that “imposing on foreign online undertakings a requirement to fund news production is not appropriate given the nature of the services these foreign undertakings provide.” Motion Picture Association-Canada contends that the CRTC “acted unreasonably” and is requesting intervention from the appeal court.
This streaming tax is different from the newly-enacted Digital Services Tax that also targets mainly U.S. tech giants. Below, Deputy Prime Minister and Minister of Finance Christie Freeland defended the tax on these foreign tech giants, which also includes Netflix, Google and Amazon.
Internet law professor at the University of Ottawa, Michael Geist, said the challenge is based on a lack of a “rational connection” between the services provided by foreign streamers, meanwhile Canadian streaming competitors like Bell’s Crave don’t have to contribute.
Again, let’s be clear–any taxes being forced onto streaming companies will be passed onto Canadian consumers. Your streaming subscriptions are just going to get more expensive, folks.
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Can we get these guys out of parliament? They’re an absolute embarrassment to Canada.
Not fast enough!
It's not the politicians' fault. They're all the same more or less and have the same agendas. Like in the USA, we have terrible choices. The blame lies with people who elected these politicians.
Nonsense. While all parties have problems, those of certain leftist persuasions will always push more taxes, more spending and more government. That’s what makes them leftists.
And so are the other parties too.
Can we get these guys out of parliament? They’re an absolute embarrassment to Canada.
Is the CRTC funded by consumers?
Imagine our tax dollars paying for them to go to court for Canadian consumers….to pay more tax! Either way, they are clearly in the big three's pocket…not at all interested in the good of Canadian consumers!!!
Mind boggling to imagine. At the same time, not surprising if this government allows it to go that far. They are of the same mindset. Tax the sheep so we can max out Daddy's credit card 3 times over and then smile and nod and tell him 'I fixed it!….in 20 years'!!!
Infuriating….
Numerous industry observers have said the changes to the Broadcasting Act could increase prices for Canadians, while also force streaming services to reconsider Canada.
——–
I suspect nothing would make this government more happy than to keep us "watching" CBC and its pro left bias.
Just imagine the thought of Canadians choosing their own entertainment – must frighten this government to no end.
Imagine if they defunded the CBC. I'm sure 50% of their funding would account for 75% of company taxes. Which just goes to show just how much the CEO is making.
Imagine if mental illness was actually taken seriously and the ableism, survival of the fittest mindset by government never existed?
Then we’d be living in Trudeau’s Canada.
💰💰💰💰💰💰…. your tax dollars at work.
Wake up Canada, the election is not a beauty pageant – there are real consequences.
Justin needs to move to Mars. That is where he is from.
Austria, Denmark, France, Hungary, Italy, Poland, Portugal, Spain, Switzerland, Turkey, and the United Kingdom have implemented a DST
18 other countries already impose a digital tax. Here are a few: Austria, Denmark, France, Hungary, Italy, Poland, Portugal, Spain, Switzerland, Turkey, and the United Kingdom. These tech corporations need to pay their fair share of taxes on income they earn in Canada.