Court reversal of Wholesale Code to have little effect: CCSA

The Federal Court of Appeal said in a Monday decision that the CRTC lacks the jurisdiction to implement its Wholesale Code -- governing the business relationships between TV service providers and broadcasters -- though overturning the CRTC’s order enforcing the code may not have much practical effect. That’s because the CRTC has already embedded many of those provisions in broadcaster and TV providers’ licenses, according to Canadian Communication Systems Alliance (CCSA) CEO Jay Thomson. “While disappointing, the court’s decision should have very little, if any, practical impact on our negotiations with the vertically-integrated programmers because the key provisions of the Wholesale Code are replicated as conditions of the licences for both the major programmers and licensed ,” he said in an email Tuesday. In the decision Monday, the Federal Court of Appeal struck down an order implementing the Wholesale Code, but said it had “no view as to whether the CRTC’s objective in issuing the Order could have been achieved by some other means.” The code, which took effect in January 2016, included rules banning provisions that would prevent a particular channel from being offered on a stand-alone basis or as part of a package customers can create themselves. It also included a ban on so-called penetration-based rate cards (PBRCs) that required service providers to compensate channels if advertising revenue thresholds weren’t met, among other provisions. Bell launched its appeal in October 2015, which was opposed by broadcasters including CBC/Radio-Canada, Blue Ant Media Inc., and DHX Media Inc. Non-vertically integrated telecoms Cogeco Inc. and Telus Corp. also challenged Bell’s appeal of the code. As part of the CRTC’s latest licence renewal process for large ownership groups, including Bell, Rogers Communications Inc., Corus Entertainment Inc. and Quebecor Inc., Bell had argued that some conditions of licence should be deleted, such as those “relating to requiring unreasonable rates, the factors to consider in establishing what represents fair market value and filing affiliation agreements, among other clauses,” because they are “all essentially the same as what is set out in the Wholesale Code.” Rogers and Corus had also recommended deleting certain conditions. The CRTC renewed Bell, Rogers and Corus’ licences for a five-year term in May 2017.

Court reversal of Wholesale Code to have little effect: CCSA

Brief | October 2, 2018

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Court reversal of Wholesale Code to have little effect: CCSA

Brief | October 2, 2018

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