The CRTC could be sued over an online radio station that has sparked indignation in Quebec

OTTAWA — The Canadian Radio-television and Telecommunications Commission (CRTC) is taking so long to decide whether Quebecor’s online radio station can continue to broadcast on 99.5 FM in Montreal that Cogeco Communication is threatening to sue the federal agency to speed things up.

In a letter sent Monday to the CRTC’s secretary general and obtained by National Post, Cogeco accused the commission of “not ensuring the proper progress” in the file, not “assuming the responsibilities incumbent upon it” and “not fulfilling its duty towards the public and the Canadian broadcasting system.”

Moreover, it states that both companies involved in broadcasting the station are operating in an “illegal situation.” Quebecor replied in its own letter on Wednesday, accusing Cogeco of making “false and defamatory statements about Quebecor Media, baselessly accusing it of multiple violations and of operating illegally.”

It all started a year ago when Quebecor, Quebec’s largest media empire and owner of powerful news outlets such as Le Journal de Montréal and TVA, announced the broadcast of its QUB digital radio programs on 99.5 FM, owned by Leclerc Communication.

The deal raised some eyebrows at the time in the industry. When it launched QUB Radio in 2018, Quebecor announced it was “the new way to do radio.” The company had long been aiming for a breakthrough in Montreal’s lucrative and cutthroat radio market.

In fact, the CRTC had already blocked Quebecor from entering the Montreal radio market in the past. In 2008, it prohibited single companies from owning newspapers, television and radio stations in the same market.

So, Quebecor turned to an unregulated digital platform.

Until August 2024 when QUB’s most popular talk radio shows then became available on a conventional weekday radio frequency, resulting in the demise of music station WKND 99.5 FM.  This was without requiring regulatory approval.

“This agreement is solely a programming agreement providing for live, simultaneous rebroadcast of the QUB radio station’s programming on the 99.5 FM frequency, Monday through Friday, 6 a.m. to 6 p.m.,” said Quebecor’s vice president of regulatory and environmental affairs Peggy Tabet in a letter to the CRTC.

Leclerc Communication’s license stipulates that it is required to broadcast a majority of hours of French-language vocal music on weekdays. The company claims to be meeting its obligations but the CRTC recently challenged this claim in a letter after receiving complaints.

Quebec’s music industry criticized the change while competitors argued that the move was outright illegal.

Cogeco and Bell Media, the two most important players in the market, asked the CRTC to enforce its regulatory requirements regarding concentrated media ownership and wants the commission to “recognize that the agreement between Quebecor and Leclerc contravenes the CRTC’s multi-media ownership policy” and that it “issues an order prohibiting Quebecor and Leclerc from broadcasting the programming of QUB Radio (…) in prime time.”

Since the complaint was filed, stakeholders from across Canada have taken an interest in this matter, generally in favour of Cogeco and Bell.

“As a smaller market private broadcaster operating AM and FM radio stations across the prairies, these developments are concerning to Golden West,” wrote Golden West Broadcasting Ltd. vice-president Robin Hildebrand  in a submission to the CRTC.

“If the commission fails to act, it will shake the confidence of broadcasters in the fair, transparent and timely enforcement of the rules and regulations governing our private broadcasting system,” he added.

Gordon Rawlson from Rawlco Radio in Saskatchewan also supported Cogeco.

On the other hand, Quebecor Media “firmly believes that the programming agreement… is in the public interest of Quebecers and promotes diversity by adding a new voice to over-the-air radio in a largely globalized news market.”

The union representing the workers at Cogeco said it is “concerning to see a digital broadcaster whose current operations are not subject to CRTC regulation circumvent the commission’s regulatory framework.”

“Our position on this matter has been clear and consistent since the day this agreement was publicly announced: we rigorously comply at all times with all of our regulatory obligations and licensing conditions,” said Leclerc Communication’s spokesperson Stéphanie Friess.

These stakeholders are now awaiting a decision. In an email exchange with National Post, CRTC spokesperson Leigh Cameron said a decision would be issued in due course.

The application was filed in November and comments officially opened in December.

“Since then, the CRTC has received a series of extension and confidentiality requests from multiple parties,” added Cameron.

But Cogeco’s patience is running out. In the letter obtained by National Post, Paul Cowling, the company’s chief legal and corporate affairs officer, writes that competitors are losing revenue because of this business agreement and that the CRTC is taking too long to act.

“This inertia is unfounded, unreasonable and harms the entire Canadian media ecosystem, while Quebecor and Leclerc continue to blatantly ignore the regulations put in place by the commission,” he wrote.

The CRTC did not respond to National Post’s questions regarding a possible lawsuit.

If the regulator does not issue a decision within 30 business days, Cogeco intends to file an application for a writ of mandamus with the Federal Court of Appeal, which would speed up the process and force a decision from the CRTC.

“As the Council shirks its obligations and responsibilities, this legal avenue seems particularly opportune to us,” wrote Cowling.

Meanwhile, Quebecor is asking the CRTC “to categorically and expeditiously dismiss the baseless application to prohibit Quebecor Media and Leclerc from broadcasting QUB content on 99.5 FM.”

National Post atrepanier@postmedia.com

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