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Shaw Sued by U.S. Competitor over Vetoed TV Ad
A recent report indicates that ZingoTel, a U.S.-based Internet telephone provider, has filed a $1.2 million lawsuit against Shaw Communications, a Canadian company that provides Internet, television and digital telephone services. The lawsuit alleges that Shaw refused to broadcast a ZingoTel television advertisement because it promoted a competing telephone service. ZingoTel has further sought damages from Corus Entertainment, Shaw’s media buyer, and has filed a complaint with the Canadian Radio-television and Telecommunications Commission (the “CRTC”), an independent agency that regulates Canada's broadcasting and telecommunications systems. The report also indicates that Vonage Canada has recently requested the CRTC to investigate why Shaw’s high-speed Internet subscribers must pay an additional $10 fee to Shaw if they select a non-Shaw Internet telephone service. Shaw representatives argue the fee is optional and is used to ensure higher-quality telephone services. Some observe that as Internet telephone technology becomes more popular, competition will increase in the Canadian telecommunications market to the benefit of consumers.
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