Meta Platforms announced on Thursday its intention to discontinue access to news for all users in Canada on Facebook and Instagram, following the enactment of a new law that mandates internet companies to compensate news publishers.
The legislation, referred to as the Online News Act, received approval from the Senate earlier in the day and is expected to be enacted once it obtains royal assent from the governor general, a standard procedure.
This legislative move was initiated in response to concerns raised by Canada’s media sector, which is advocating for stricter regulations to counteract the perceived encroachment of tech firms on the online advertising landscape that supports news organizations.
In a statement, Meta confirmed, “We are announcing that access to news will be removed for all users in Canada on Facebook and Instagram before the Online News Act takes effect.”
Meta had indicated its plans for weeks, emphasizing that news content holds no economic benefit for the company and that users primarily use its platforms for reasons other than news consumption.
The Online News Act seeks to establish rules that will compel platforms like Facebook and Google, owned by Alphabet, to negotiate commercial agreements and provide financial remuneration to news publishers for their content. This is similar to legislation enacted in Australia in 2021.
Technology firms from the United States have expressed concerns about the sustainability of such regulations for their business models. Google has criticized the Canadian law as being more extensive than similar measures in Australia and Europe, as it suggests compensation for news story links shown in search results, potentially affecting outlets that do not generate news content.
A representative from Google stated on Thursday that the current version of the bill is “unworkable” and emphasized the company’s desire to collaborate with the government to find a viable solution.
The Canadian federal government has thus far resisted calls for amendments to the legislation. Earlier this month, Prime Minister Justin Trudeau accused Meta and Google of employing “bullying tactics” against the new regulations.
Both Google and Facebook initially threatened to limit their services in Australia when comparable laws were introduced, but eventually reached agreements with Australian media entities after modifications were made to the legislation.
Heritage Minister Pablo Rodriguez, who was instrumental in introducing the bill, noted on Thursday that the government plans to undertake a regulatory and implementation process once the law is in effect.
Rodriguez asserted, “If the government can’t stand up for Canadians against tech giants, who will?”
The heritage ministry has conducted meetings with representatives from Facebook and Google this week, expressing a commitment to ongoing discussions, according to a government spokesperson.
Danielle Coffey, president of the News Media Alliance, praised the Canadian Parliament for standing firm against major technology companies following the Senate’s approval of the bill.
“We are encouraged by the growing recognition of the necessity for legislative action to ensure fair compensation, both in Canada and globally, and we hope to see similar measures adopted in the United States,” Coffey commented.
© Thomson Reuters 2023
