Telus, TLN, have a business dispute, not an actionable complaint: CRTC

On Friday the CRTC dismissed a complaint by Telus Corp. against TLN Media Group (TMG), saying what was before it was a business dispute, not a violation of commission regulations. In July 2020, the telecom filed an application alleging that TMG had engaged in undue preference during negotiations for carriage of its Mediaset Italia channel. TMG operates the TLN channel in English as well as third-language stations Mediaset, EuroWorld Sport and Univision Canada. Broadcasting distribution undertakings (BDUs) such as Telus are required to carry one Canadian-based, third-language, channel for each non-Canadian channel carried. This is known as the 1:1 rule. Telus had been carrying the TLN channel as a counterweight to RAI Italia. However, as the channel migrated to English programming, the 1:1 rule no longer applied. “In its application, Telus stated that it has faced significant difficulties negotiating with TMG to carry Mediaset in a package subsequent to the termination of the agreement to carry TLN,” the decision noted. Telus said TMG offered a package of services, including the TLN channel. When Telus balked at the proposal and said it wanted Mediaset as a stand-alone service, TMG asked for too much money, the western telecom alleged. TMG responded that its rates for Mediaset are lower than what Telus pays for both the TLN channel and Univision Canada. All of the interventions filed to the commission supported TMG’s position. The Public Interest Advocacy Centre (PIAC) maintained that a finding of undue preference would set a dangerous precedent, allowing BDUs to skew the prices they pay for programming. Iristel Inc. echoed that sentiment, saying Telus was using the regulator for something that could be resolved through negotiation. It cited a 2018 CRTC decision involving Ebox Inc. and BCE Inc.’s Bell Media which found that undue preference did not occur. A joint submission from the National Congress of Italian-Canadians, Latincouver, Ital Press Ltd. and Violet Chronicle Entertainment Inc. also backed TMG. “The commission also acknowledged that a difference in the costs of providing programming does not in and of itself constitute an undue preference,” the decision stated. “This framework was also extended to programming services, as such services could also be in a position to unduly benefit from their market position.” Later on the regulator wrote it “notes that TMG has participated in negotiations with Telus since the beginning of this dispute. This reflects a willingness on the part of TMG to negotiate with Telus. Should the parties need assistance in resolving a negotiation dispute related to carriage of programming, the commission reminds the parties that commission dispute resolution mechanisms, such as staff-assisted mediation and final-offer arbitration are available to the parties.” The CRTC said it would have been more appropriate to settle the matter through negotiation, either bilaterally or with the commission’s assistance. Parties should exhaust all of those measures before calling on the CRTC to intervene, it noted. –Reporting by Paul Park at ppark@thewirereport.ca and editing by Jenna Cocullo at jcocullo@thewirereport.ca.

Telus, TLN, have a business dispute, not an actionable complaint: CRTC

News | February 11, 2022

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Telus, TLN, have a business dispute, not an actionable complaint: CRTC

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