Google has filed a lawsuit against Canada's broadcasting regulator, contending that the revenue it generates from advertisements on YouTube videos should not be factored into the regulatory fees it is required to pay the CRTC.
Google Argues Revenue Exemption in Canadian Court
In a filing submitted to the Federal Court of Canada on April 24, Google asserts that the revenues in question are derived from content created by users.
According to Financial Post, Google contends that these revenues should be exempt from fee calculations due to exceptions outlined in the Broadcasting Act.
Google claimed that the federal government has instructed the CRTC to refrain from imposing regulatory obligations on online platforms like YouTube when it comes to the content created by social media creators.
Google Claims Directive on YouTube Ad Revenue
However, the tech giant claims that it was instructed by the regulator to include its YouTube ad revenues in its fee revenue calculation, despite initially excluding them. This directive came in a March 25 email.
As stated by Google, it complied by refiling the form with the revenue it had initially subtracted. However, the company still argues that those fees should be excluded from the total.
The company is requesting the court to invalidate the CRTC's order, arguing that it is "unreasonable," and asserting that its original form adheres to the regulations.
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