In a statement released on Thursday, Meta Platforms announced its decision to block access to news on Facebook and Instagram for all users in Canada. This comes after the Canadian parliament passed the Online News Act, a legislation aimed at compelling internet giants to pay publishers for news content. The Senate upper chamber approved the act earlier in the day, and it is expected to be officially adopted soon.
Mark Zuckerberg’s Meta confirmed that news availability on Facebook and Instagram in Canada will be terminated before the Online News Act comes into effect. The act establishes regulations that require platforms like Facebook and Google to negotiate commercial agreements and compensate news publishers for their content. This mirrors a pioneering law that was passed in Australia in 2021. However, US technology companies argue that these proposals are unsustainable for their businesses. Google, in particular, believes that Canada’s law is more rigorous than those enacted in Australia and Europe, and has proposed amendments to address its concerns. In light of these developments, Meta has decided to end news availability on its platforms for all Canadian users.
Interestingly, Canada’s federal government has resisted calls for changes to the legislation. Prime Minister Justin Trudeau recently accused Meta and Google of using “bullying tactics” in their opposition to the bill. Heritage Minister Pablo Rodriguez, who introduced the legislation last year, stated that the government will engage in a regulatory and implementation process after the act becomes effective. He emphasized the importance of the government standing up for Canadians against tech giants, expressing concerns over the power imbalance.
Google spokesperson Shay Purdy expressed the company’s efforts in proposing sensible and practical solutions, but highlighted the persistent unworkability of the bill. Meetings have been held this week between the heritage ministry and representatives from Facebook and Google, and further discussions are anticipated.
The Online News Act was introduced in response to complaints from Canada’s media industry, which seeks stricter regulations on tech companies to prevent them from squeezing out news businesses from the online advertising market. The approval of the bill in the Senate has garnered praise from Danielle Coffey, president of the News Media Alliance, who commends the Canadian Parliament for taking a stance against Big Tech and emphasizing the need for fair compensation for news publishers. Coffey hopes that the United States will follow suit in recognizing the importance of legal action to ensure fair compensation.
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