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JAKARTA – Many companies are opposing the revenue sharing policy aimed at supporting the broadcasting system in Canada. Netflix and Walt Disney Company have also rejected the policy.

Last June, the Canadian Radio-television and Telecommunications Commission (CRTC) declared that all services streaming The country’s majors must contribute 5 percent of their revenue to Canada. This is done to support broadcast services.

Netflix and Walt Disney say the rules set by the national broadcasting regulator are unreasonable and have no legal basis. The two companies have also taken further action by filing a lawsuit.

The Motion Picture Association-Canada, representing Netflix, Walt Disney and other undisclosed companies, appealed to the Federal Court. They demanded a judicial review of the publication of this settlement.

“The decision reveals no basis for the CRTC’s conclusion that it is appropriate to require foreign online companies to contribute to the production of news,” the Canadian Motion Picture Association said in its lawsuit, as quoted by Reuters.

The Motion Picture Association-Canada pointed out that the CRTC’s actions were unreasonable, especially since the companies being asked to share their revenues were foreign companies. “(The CRTC) is forcing foreign online companies to contribute financially to support news production.”

The rule will come into effect in September and, according to the CRTC, will generate US$146 million (2.3 trillion rupees) per year. The aim is for the revenue to meet urgent needs in the broadcasting system, such as local news on radio and television.