Toronto Star

CRTC is hoping it gets new enforcemen­t powers

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“Companies who are extracting a profit, they are participat­ing in the Canadian market and deriving revenues, should be contributi­ng.”

IAN SCOTT CHAIR OF THE CANADIAN RADIO-TELEVISION AND TELECOMMUN­ICATIONS COMMISSION

Trudeau was joined by all the major opposition leaders in agreeing that internatio­nal tech giants need to contribute to Canada’s economy.

“Companies who are extracting a profit, they are participat­ing in the Canadian market and deriving revenues, should be contributi­ng,” Scott said while being interviewe­d in his CRTC office in Gatineau, Que.

“That includes Netflix and all of the others in that situation,” he said.

“The manner that they contribute is what’s at issue.”

Companies such as Bell Media and other so-called traditiona­l broadcaste­rs are required to pay into the Canadian Media Fund to help finance production of Canadian content.

Netflix has argued it should not have to pay into such a fund because it can’t draw on it. Instead, it has committed — without being required to do so under current regulation­s — to spending on the production of movies and other content in Canada.

The U.S.-based company has pledged to spend at least half a billion dollars over five years to fund original Canadian production­s.

As a result, Netflix is “probably the single largest contributo­r to the (Canadian) production sector today,” Scott said.

“They are filling up production facilities across the country,” he said. “So is Amazon, so is Disney.”

European countries have enacted legislatio­n to force streaming services to pay for original domestic content. In France, Netflix pays a set tax on its revenue from French subscripti­ons.

In the case of YouTube, which provides content produced by its users, a tax is applied to its ad revenue.

The Liberals revealed during the election campaign a plan to impose a three per cent tax on multinatio­nal tech giants operating in Canada, worth an estimated $2.5 billion over four years. The tax, they said, would be applied to the sales of online advertisin­g or any profits generated through Canadian user data.

The CRTC is also hoping the review will recommend it be granted new enforcemen­t powers and more flexibilit­y in dealing with broadcaste­rs that fail to comply with regulation­s.

Currently, the regulator has the power to take away a broadcaste­r’s license. But unlike in the telecom sector, it is unable to impose monetary penalties for what are considered lesser administra­tive infraction­s.

“Think of it like speeding tickets,” Scott explained.

“You speed, we can stop you, pull you over and say, ‘You were speeding, here’s your ticket, you have to pay.’ We don’t have to take away your car, we don’t have to put you in jail.

“On the broadcasti­ng side, all we can do is take away licenses,” he noted. “That’s draconian. That’s putting you in jail and taking away your car.”

 ??  ?? Netflix has pledged to spend half a billion dollars over five years to fund Canadian production­s, such as “Trailer Park Boys.”
Netflix has pledged to spend half a billion dollars over five years to fund Canadian production­s, such as “Trailer Park Boys.”

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