Supreme Court sides with cable, satellite companies on fee system

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OTTAWA - The Supreme Court of Canada says the CRTC does not have the power to ask cable providers to pay broadcasters for carrying their signals.

In a 5-4 decision, the court ruled that setting up such a system is not within the scope of the Canadian Radio-Television and Telecommunications Commission, overturning an earlier Federal Court of Appeal decision.

The ruling is a major victory for cable and satellite companies.

The CRTC had asked the appeal court whether it could set up what's known as a value-for-signal system when it decided to launch the plan in 2010.

The system would allow television broadcasters to charge cable and satellite providers for picking up their signals, which those companies now do for free.

Broadcasters argued the revenue was needed to support local programming, while the cable and satellite firms said it was beyond the authority of the CRTC and would just lead to higher costs for consumers.

Organizations: Canadian Radio-Television and Telecommunications Commission, Supreme Court of Canada, Federal Court of Appeal

Geographic location: OTTAWA

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