Canadian guilds and unions on Friday applauded a federal court striking down the licensing of Egyptian-owned mobile carrier Globalive Communications as a move that restores Canada’s foreign ownership restrictions.

“Overturning the cabinet decision is a victory for Canadian ownership rules and a victory for Canadian culture,” Stephen Waddell, ACTRA’s National Executive Director.

The Federal Court of Canada quashed a decision by the federal cabinet in Ottawa to overturn a CRTC ruling that stopped Globalive from securing a license to operate in Canada.

Ottawa second-guessing the CRTC decision not only allowed Globalive to enter the Canadian market, but signaled a future relaxation of the country’s foreign ownership limits on ownership of phone companies.

“Globalive was potentially the beginning of the end of our foreign ownership laws; we’re ecstatic that the courts have stopped the train in its tracks,” Waddell added.

“The Federal Court has said that cabinet is not above the law,” added Dave Coles, president of the Communications, Energy and Paperworkers Union of Canada.

“If Stephen Harper and his Cabinet want to change the Telecommunication Act, they have to have the guts to go before Parliament,” he said.

The CRTC rejected Globalive’s original application for a telecom license on grounds it violated rules banning foreign control of the sector.

Ian Morrison, a spokesperson for the Friends of Canadian Broadcasting, said the federal court’s position that current foreign ownership rules matter “has brought a sigh of relief across our entire industry.”