On Tuesday, various groups representing the Canadian news industry urged the nation’s antitrust authority to launch an investigation into Meta Platforms’ recent decision to prohibit news content on its services. These organizations allege that the parent company of Facebook is exploiting its market dominance.
Last week, Meta commenced its ban on news across Facebook and Instagram for all Canadian users in reaction to a legislative measure mandating that major internet companies compensate publishers for news articles.
The Online News Act in Canada, which reflects a global movement aimed at pressuring tech companies to financially support news sources, was enacted in June but has not yet taken effect. The government is in the process of finalizing regulations that would necessitate revenue sharing from advertising once the law is fully implemented later this year.
“By stopping news content from appearing on its platforms, Meta is trying to undermine the ability of Canadian news organizations to compete fairly in both the news publishing and online advertising sectors,” the industry groups stated in their application to Canada’s Competition Bureau.
The request was submitted by News Media Canada, the Canadian Association of Broadcasters, and CBC/Radio-Canada, seeking an inquiry into Meta’s actions and an end to the news block.
The applicants argued that “Meta’s anticompetitive behavior, which has garnered the attention of regulators globally, will entrench its already powerful position in the advertising and social media sectors, ultimately harming the landscape of Canadian journalism.”
A representative from the Competition Bureau confirmed receipt of the complaint and indicated that a preliminary assessment of the situation is underway.
“The Bureau is gathering information to evaluate whether this conduct may be subject to the Competition Act, including investigating how this specific behavior may adversely affect competition,” the spokesperson stated.
In a statement last week, a Meta spokesperson referred to the new law as being founded on a “false premise” that the company unfairly benefits from news content shared on its platforms.
Meta argues that users do not primarily visit its platforms for news and asserts that imposing payment for content is not sustainable for their business model.
Officials in Ottawa noted that the company is currently not obligated to comply with the law and accused Meta of avoiding discussions while final regulations are still being developed.
Canada’s media sector has long advocated for stricter regulations on internet giants to help news organizations recover financial losses incurred during a time when platforms like Facebook and Google, owned by Alphabet, have dominated the online advertising market. Google has indicated plans to follow suit with a news blockade in Canada once the regulations take effect.
© Thomson Reuters 2023
