In light of the consolidation trend in the broadcasting industry, the Canadian Radio-television and Telecommunications Commission (CRTC) today launched a public proceeding to review its safeguards to prevent anti-competitive behaviour. The proceeding will include a public hearing starting on May 9, 2011, in Gatineau, Que.
“The broadcasting industry is being significantly reshaped by a series of major transactions,” said Konrad von Finckenstein, Q.C., Chairman of the CRTC. “As a regulator, it is only prudent that we study the implications to ensure we have the right tools to deal with competitive concerns as they arise. Transactions will continue to be considered under the existing rules until we have completed our review.”
Over the past decade, the broadcasting industry has experienced several transactions that have seen cable and satellite distributors acquire television properties and, in some cases, production companies. Noteworthy transactions include:
* Quebecor Media Inc.’s purchase of the TVA television network in 2001
* Rogers Media Inc.’s purchase of five Citytv stations in 2007, and
* Shaw Communications Inc.’s purchase of the Canwest Global Communications Corp. television properties, which was approved today by the Commission.
In addition, BCE Inc. announced in September its intention to acquire full control of CTVglobemedia Inc.
The CRTC has guidelines to ensure negotiations between broadcasting distributors and television programmers are conducted in accordance with good commercial practices. Among other things, they ensure that competitors are given a fair opportunity to negotiate for programming and other broadcast rights. However, there is now a concern that large, integrated broadcasting distributors could act in a manner that would be detrimental to the broadcasting industry.
Through the proceeding launched today, the CRTC will consider whether its existing mechanisms are sufficient to deal with the new reality of a vertically-integrated market. Interested parties may submit their comments by March 7, 2011. They may do so by filling out the online form, http://support.crtc.gc.ca/rapidscin/default.aspx?lang=en¬ice=n2008-12 by writing to the Secretary General, CRTC, Ottawa, Ontario K1A 0N2, or by fax, at 819-994-0218.
Broadcasting Notice of Consultation CRTC 2010-783 http://www.crtc.gc.ca/eng/archive/2010/2010-783.htm
