Meta Platforms has announced its decision to terminate news access on Facebook and Instagram for all users in Canada once the Online News Act, a legislation approved by the Senate upper chamber, becomes law.
The legislation, aimed at regulating tech giants and ensuring fair compensation for news publishers, is awaiting royal assent from the governor general to finalize the process.
The implementation of the Online News Act comes as a response to concerns raised by Canada’s media industry, which seeks stricter regulations for tech companies to prevent them from dominating the online advertising market and overshadowing news businesses.
In a statement, Meta confirmed the impending end of news availability on its platforms, citing the lack of economic value and minimal user engagement with news content.
The statement read; “Today, we are confirming that news availability will be ended on Facebook and Instagram for all users in Canada prior to the Online News Act taking effect.”
The Online News Act introduces provisions that oblige platforms like Facebook and Google (owned by Alphabet) to negotiate commercial agreements and remunerate news publishers for their content.
This step parallels the groundbreaking law enacted in Australia in 2021. However, US technology giants have voiced their concerns, stating that the proposals are unsustainable for their businesses.
Google argued that Canada’s law goes beyond those implemented in Australia and Europe, as it assigns a value to news story links displayed in search results and potentially affects outlets that do not generate news content.
Google has suggested revisions to the bill, proposing that payment be based on the display of news content rather than links, and that eligibility should be limited to businesses that produce news and adhere to journalistic standards.
Despite objections and calls for amendments, Canada’s federal government has remained firm in its stance.
Prime Minister, Justin Trudeau criticized Meta and Google, accusing them of employing “bullying tactics” in their campaign against the legislation.
Similar confrontations occurred in Australia, but eventually, both Google and Facebook reached agreements with Australian media companies after the law underwent amendments.
Heritage Minister, Pablo Rodriguez, who introduced the bill, emphasized that the government would engage in a regulatory and implementation process following the legislation’s enactment.
Rodriguez underlined the government’s commitment to safeguarding the interests of Canadians against tech giants.
The Canadian heritage ministry has held meetings with representatives from Facebook and Google this week, and further discussions are expected to take place.
While Google expressed its view that the bill remains “unworkable,” it expressed a desire to collaborate with the government in finding a way forward.
President of the News Media Alliance global industry group, Danielle Coffey, commended the Canadian Parliament for standing up to Big Tech following the approval of the bill in the Senate.
Coffey expressed hope that the United States would follow suit, recognizing the need for legal action to ensure fair compensation for news publishers.
As Canada prepares to implement the Online News Act, the outcome of this legislation will undoubtedly shape the relationship between tech giants and the media landscape, potentially inspiring similar actions worldwide.
