Canadian Supreme Court: CRTC Lacks Authority to Impose Retransmission

In a 5-4 decision, the Canadian Supreme Court has ruled that that country's version of the Federal Communications Commission does not have the authority to impose a retransmission consent regime on Canada's cable and satellite operators.

The court ruled that the Canadian Radio-television and Telecommunications Commission (CRTC) could not use its general regulatory authority to impose the specific requirement that MVPDs negotiate retransmission consent payments with broadcasters. "The provisions of the Broadcasting Act, considered in their entire context, may not be interpreted as authorizing the CRTC to implement the proposed value for signal regime," the court said. CRTC in 2010 tried to establish a retrans regime similar to that in the U.S., where broadcasters could negotiate for payment and would have the right to deny retransmission if an agreement was not reached.