Global streaming services such as Netflix and Disney Plus are challenging a regulatory directive under the Online Streaming Act to contribute money to Canada’s broadcast sector, including for local news.
Motion Picture Association-Canada, which also represents platforms HAYU, Sony’s Crunchyroll, Paramount Plus and Pluto TV, has filed two legal challenges in Federal Court in response to the new rule.
The Canadian Radio-television and Telecommunications Commission said in June that foreign streamers must contribute five per cent of their annual Canadian revenues into a fund devoted to producing Canadian content, including local TV and radio news, as well as Indigenous and French-language content.
The CRTC said streaming companies that are not affiliated with a Canadian broadcaster – and that make at least $25 million in Canadian revenue – would be required to pay into the fund, which is expected to inject about $200 million into the system every year.
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MPA-Canada is seeking a leave to appeal and a judicial review of the CRTC’s decision, arguing the regulator has no statutory authority to compel foreign companies to support Canadian news production and that it made “errors of law and jurisdiction.”
The U.S.-based Digital Media Association also says three of its members – Amazon, Apple and Spotify – have filed legal challenges to the mandatory financial contributions, calling the CRTC decision “backward-looking” and unsustainable.
The CRTC said in a statement Friday that it will “continue to balance consulting widely with moving quickly to build the new regulatory framework,” but declined to comment on the streamers’ legal challenges as the case is before the court.
The CRTC’s move is meant to level the regulatory playing field between tech giants and cable companies, but a spokesperson for MPA-Canada said requiring global entertainment streaming services to pay for local news “is a discriminatory measure that goes far beyond what Parliament intended.”
“Our members’ streaming services do not produce local news nor are they granted the significant legal privileges and protections enjoyed by Canadian broadcasters in exchange for the responsibility to provide local news,” the group’s president, Wendy Noss, said in a statement.
In its court filings, MPA-Canada also argues that the CRTC rule could indirectly allow the disclosure of foreign streamers’ confidential revenue information to the Canadian broadcasters they compete with.
The Digital Media Association has also expressed concern about its members having to share “sensitive commercial information” with third parties, including Canadian broadcasters.
“The approach taken is backward-looking and bad public policy from the current government of Canada, and fails to acknowledge streaming’s existing contributions to music production,” the association wrote in a statement that urges the CRTC to rethink its implementation of the Online Streaming Act.
This report by The Canadian Press was first published July 5, 2024.
TORONTO – Magna International Inc. says it has launched a targeted review of its historical records in response to sexual assault charges against founder Frank Stronach.
Magna spokeswoman Tracy Fuerst says the review process is complicated because of the passage of time.
Fuerst says that if relevant information is found, the company, which is not facing any criminal or civil allegations, will follow a strict protocol to respect the legal rights of all and co-operate with authorities.
To date, the auto parts company’s internal document review has discovered one settlement involving a historical harassment allegation against Stronach and Magna Entertainment Corp. that had already been reported.
Stronach gave up control of Magna in 2010 and stepped down as chairman in 2012.
He faces charges including rape, attempted rape, indecent assault, forcible confinement and sexual assault in connection with alleged incidents that date as far back as 1977. Stronach has said he is not guilty and that he will fight the charges.
This report by The Canadian Press was first published Oct. 3, 2024.
CALGARY – Enbridge Inc. says it will spend about US$700 million to build new crude oil and natural gas pipelines in the U.S. Gulf of Mexico for the Kaskida development, operated by BP Exploration & Production Co.
The crude oil pipeline, named the Canyon Oil Pipeline System, will have a capacity of 200,000 barrels per day and originate in the Keathley Canyon area of the gulf.
It will deliver crude to the existing Green Canyon 19 platform, operated by Shell Pipeline Co. LP for ultimate delivery to the Louisiana market.
The natural gas pipeline, named the Canyon Gathering System, will have a capacity of 125 million cubic feet per day.
It will connect to Enbridge’s existing Magnolia Gas Gathering Pipeline.
The company says detailed design and procurement activities are expected to start early next year with the pipelines expected to be operational by 2029.
This report by The Canadian Press was first published Oct. 3, 2024.
CALGARY – TC Energy Corp. has completed its spinoff of South Bow Corp., its crude oil pipelines business, as an independent company.
The new company, which will be headquartered in Calgary with an office in Houston, will be led by Bevin Wirzba, formerly the executive vice-president for TC Energy’s natural gas and liquids pipelines business.
South Bow will run TC Energy’s crude oil pipelines business, including the critical Keystone pipeline system.
The move is the result of a strategic review in which the Calgary-based TC considered its options including the potential sale of the oil pipelines business.
Spinning off the oil pipelines business, which has long-term committed contracts with oil shippers, will give South Bow the chance to use its robust cash flows to pay down debt and enhance shareholder returns, while TC Energy will become a growth-oriented company focused on natural gas.
TC Energy — which has natural gas transportation infrastructure in Canada, the U.S., and Mexico — is bullish on the future of the commodity, in particular the potential for growth spurred by demand for liquefied natural gas (LNG).
TC Energy also has plans to look at new, low-carbon energy opportunities such as nuclear and pumped hydro energy storage.
The company has been under scrutiny by analysts and credit ratings for its significant debt load as well as for cost overruns on the Coastal GasLink pipeline project, which was completed in the fall of 2023.
TC Energy shareholders voted in favour of the spinoff of the crude pipelines business in a vote in June.
South Bow common shares were distributed Tuesday to TC Energy shareholders of record on Sept. 25. Shareholders received one South Bow common share for every five TC Energy common shares owned.
South Bow’s common shares are expected to start trading on the Toronto Stock Exchange on Wednesday under the ticker symbol SOBO. Trading on the New York Stock Exchange is expected to start on or about Oct. 8.
This report by The Canadian Press was first published Oct. 1, 2024.
