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Global Streamers Challenge CRTC’s Contribution Requirement in Federal Court Hearing

Apple, Amazon and Spotify argue the contribution order exceeds the CRTC’s authority by effectively taxing foreign streaming services.

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

Overview

  • The 2024 order enacted under the Online Streaming Act mandates services with over $25 million in annual Canadian revenues to pay 5 percent into domestic content and news funds.
  • In December, the Federal Court of Appeal stayed payments—estimated at about $1.25 million per company—pending resolution of consolidated appeals.
  • The streamers contend the rule unfairly targets foreign platforms, arguing it is inequitable and that the CRTC lacks taxation powers under the Broadcasting Act.
  • Motion Picture Association–Canada is separately contesting the requirement that streamers allocate 1.5 percent of revenues to local TV news, saying they have no news-production mandate.
  • The federal government and the Canadian Association of Broadcasters argue the contributions address a funding imbalance that places greater obligations on traditional broadcasters.