Global streaming services such as Netflix and Disney Plus are challenging a regulatory directive under the Online Streaming Act to contribute money to Canada含羞草研究社檚 broadcast sector, including for local news.

Motion Picture Association-Canada, which also represents platforms HAYU, Sony含羞草研究社檚 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 含羞草研究社� and that make at least $25 million in Canadian revenue 含羞草研究社� would be required to pay into the fund, which is expected to inject about $200 million into the system every year.

MPA-Canada is seeking a leave to appeal and a judicial review of the CRTC含羞草研究社檚 decision, arguing the regulator has no statutory authority to compel foreign companies to support Canadian news production and that it made 含羞草研究社渆rrors of law and jurisdiction.含羞草研究社�

The U.S.-based Digital Media Association also says three of its members 含羞草研究社� Amazon, Apple and Spotify 含羞草研究社� have filed legal challenges to the mandatory financial contributions, calling the CRTC decision 含羞草研究社渂ackward-looking含羞草研究社� and unsustainable.

The CRTC said in a statement Friday that it will 含羞草研究社渃ontinue to balance consulting widely with moving quickly to build the new regulatory framework,含羞草研究社� but declined to comment on the streamers含羞草研究社� legal challenges as the case is before the court.

The CRTC含羞草研究社檚 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 含羞草研究社渋s a discriminatory measure that goes far beyond what Parliament intended.含羞草研究社�

含羞草研究社淥ur members含羞草研究社� 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,含羞草研究社� the group含羞草研究社檚 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含羞草研究社� confidential revenue information to the Canadian broadcasters they compete with.

The Digital Media Association has also expressed concern about its members having to share 含羞草研究社渟ensitive commercial information含羞草研究社� with third parties, including Canadian broadcasters.

含羞草研究社淭he approach taken is backward-looking and bad public policy from the current government of Canada, and fails to acknowledge streaming含羞草研究社檚 existing contributions to music production,含羞草研究社� the association wrote in a statement that urges the CRTC to rethink its implementation of the Online Streaming Act.

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