QVC approved for distribution despite CRTC finding denial was justified

The CRTC says its 2016 decision that U.S. shopping channel QVC could not be distributed in Canada was justified, but a clause in the soon to come into force Canada–United States–Mexico Agreement (CUSMA) means it will be permitted to be distributed from July 1. In a decision issued Monday, the CRTC provided further reasons for its 2016 denial of V Media Inc.’s application to add QVC to the list of non-Canadian programming services and stations authorized for distribution, but will add QVC to the list regardless, because CUSMA requires Canada to authorize the distribution of U.S. specialist home shopping programming. Chapter 15 of the trade agreement states that Canada “shall ensure that U.S. programming services specializing in home shopping, including modified versions of these U.S. programming services for the Canadian market, are authorized for distribution in Canada and may negotiate affiliation agreements with Canadian cable, satellite, and distributors.” QVC will be able to be distributed in Canada on July 1, the same day CUSMA comes into force. In 2017, the Federal Court of Appeal sided with VMedia, finding the CRTC’s decision to deny the distribution of QVC was not reasonable and ordered the regulator to review the decision. In its 2016 decision, the CRTC ruled that QVC would be carrying out a broadcasting undertaking in Canada, at least in part, an assertion disputed by V Media and questioned by the Federal Court of Appeal in 2017. Justices David Near and Wyman Webb said in the reasons (Justice Mary Gleason dissented) that the CRTC’s decision missed “a consideration of why, if QVC Inc. were to be carrying on business in Canada, this would necessarily lead to the conclusion that QVC Inc. would be carrying on a ‘broadcasting undertaking’ within Canada.” But in its Monday decision, the CRTC said its initial denial was justified because QVC would be “competitive with” The Shopping Channel, owned by Rogers Communications Inc. The potential harm of authorizing QVC for distribution outweighed the potential benefit to Canadians and the country’s broadcasting system, the CRTC said in its decision, finding it would be inappropriate to authorize it even if QVC were found not to be operating a broadcasting undertaking in the country. Also on Monday, the CRTC revised its Exemption Order Respecting Teleshopping Programming Service Undertakings, which will allow modified U.S. home shopping programming undertakings to operate in Canada as of July 1. Under the Broadcasting Act, a foreign service modified for the Canadian market is ineligible to be added to the list of non-Canadian programming services and stations authorized for distribution, and had to receive a licence or other authority pursuant to an exemption.

QVC approved for distribution despite CRTC finding denial was justified

Brief | June 15, 2020

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QVC approved for distribution despite CRTC finding denial was justified

Brief | June 15, 2020

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