Google challenges CRTC broadcasting fees decision in appeal court

Alphabet Inc.’s Google wants the Federal Court of Appeal to set aside a decision by the CRTC that adds online streaming services to the list of companies required to pay the regulator administrative fees each year, arguing that the revenue the company earns through advertisements on YouTube should be exempt from payment calculations. The CRTC’s updated fee structure, which went into effect April 1, requires both traditional broadcasters and online streaming services to pay the regulator fees annually based on the revenues they make in Canada, which are then used to run the commission’s operations. Large companies that own multiple broadcasting services do not pay fees on the first $25 million they make, and individual broadcasters do not pay fees on their first $2 million in revenue. At the heart of Google’s appeal to the federal court filed earlier this week is its belief that its content streaming platform YouTube shouldn’t be subjected to the fees, specifically related to the revenue made from advertisements that play before and during some videos on the platform. Google makes money through the ads people view on YouTube — a platform which allows content creators to create, upload, and share videos with users around the world. It also earns money via YouTube by selling subscription-based services. As far as the Online Streaming Act should be concerned, YouTube is an online undertaking that provides a social media service, Google argues. So, the company states in its appeal that YouTube should be exempt from the requirements of the Act, including the broadcasting fees, because of a rule saying the CRTC cannot regulate social media creators or their content. The company argues that the CRTC’s broadcasting fee decision does not make space for companies to draw a distinction between advertisements that were uploaded by users and advertisements that were uploaded by the social media service provider. “In YouTube’s case, advertisements are uploaded by users, and therefore fall within the exclusion clause in the Act,” Google states. CRTC spokesperson Leigh Cameron told The Wire Report in an email that the regulator would not provide comment on Google’s appeal while it’s before the court, except to say that the CRTC “will continue to consult widely and move quickly to build the new regulatory framework.” While Google is requesting that the appeal court sets the CRTC’s decision aside, a separate court filing dated Aug. 6 also disputes an invoice it received from the regulator for an undisclosed amount of money to be collected as part of the broadcasting fees. The company requests that the invoice be set aside by the court as well. - Reporting by Hannah Daley at hdaley@thewirereport.ca with files from Paul Park at ppark@thewirereport.ca.

Google challenges CRTC broadcasting fees decision in appeal court

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By Hannah Daley
| August 9, 2024

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Google challenges CRTC broadcasting fees decision in appeal court

Broadcast | By Hannah Daley | August 9, 2024

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By Hannah Daley
| August 9, 2024