GATINEAU – Since all of the country’s biggest broadcasters (save CBC) will soon all be owned by Canada’s biggest carriers, the CRTC has announced a new proceeding to examine 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, chairman of the CRTC, in the press release. “As a regulator, it’s 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.”
The release points to the transactions:
• 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 (a deal which is likely to be done prior to May 9).
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,” reads the Commission’s release.
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.
