In a move driven by the Canadian government’s requirement for platforms to pay news outlets, Meta has decided to no longer display traditional media outlets on its sites in Canada. Google is also expected to follow suit. The Online News Act, passed by Canada in June, mandates that social media platforms must compensate news outlets for using their content. Advocates argue that platforms like Facebook and Instagram profit from news articles without adequately compensating the creators. Instead of paying the outlets, Meta has chosen to exclude the articles from news feeds, acting preemptively before the law takes effect in 2024.
Rachel Curran, Meta’s head of public policy in Canada, explained that news outlets voluntarily share content on Facebook and Instagram to expand their audiences and improve their bottom line. However, Meta recognizes that their users do not primarily rely on their platforms for news consumption.
Google has also voiced its concerns regarding the new law and plans to exclude Canadian news sites from search results when the law comes into effect later this year. According to Google executive Kent Walker, the searches conducted on Google linked to Canadian news sites totaled 3.6 billion last year. Walker stated that the law creates uncertainty for their products and exposes them to financial liability simply for facilitating Canadians’ access to news.
The companies’ refusal to comply with the law has faced criticism from Heritage Minister Pascale St-Onge, who labeled their decision as “irresponsible.” St-Onge emphasized that they would rather block the users’ access to quality local news than pay their fair share to news organizations. She further asserted that the government must defend Canadians against tech giants.
The Online News Act is similar to an Australian law passed in 2021. Eventually, both Meta and Google reached agreements with Australian sources to license news content after intense negotiations with lawmakers, avoiding news blockades. However, in the case of Canada, Walker stated that Google’s negotiations with Canadian lawmakers were unsuccessful.
Another similar measure was proposed in California but has been put on hold due to opposition from Meta, Google, and other companies.
Walker mentioned in the blog post that their efforts to negotiate reasonable and balanced amendments to the legislation (C-18) were unsuccessful after a year of advocacy. As for copyright, this content is the property of Nexstar Media Inc. and may not be published, broadcast, rewritten, or redistributed without their permission.
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