FILE PHOTO: The Netflix logo is seen on their office in Hollywood, Los Angeles, California, U.S. July 16, 2018. REUTERS/Lucy Nicholson/File Photo
OTTAWA (Reuters) -Global streaming companies said on Thursday they were challenging new Canadian rules that oblige them to help pay for local news, saying Canada's federal government had acted unreasonably and provided no legal basis for the demand.
The Canadian Radio-television and Telecommunications Commission (CRTC), the national broadcasting regulator, said in June that major online streaming services must contribute 5% of their Canadian revenues to support the domestic broadcasting system, including news generation.
