Meta has decided that it will not pay for news content and instead will take down news from Facebook and Instagram. This move comes in response to new law called the Online News Act, which requires internet companies to pay news publishers
Meta has decided that it will not pay for news content and instead will take down news from Facebook and Instagram. This move comes in response to new law called the Online News Act, which requires internet companies to pay news publishers
Meta the parent company of Facebook and Instagram, has announced its decision to block access to news content on both platforms for all users in Canada. This move comes in response to new legislation called the Online News Act, which requires internet giants to pay news publishers.
The legislation has been approved by the Senate and is expected to become law after receiving royal assent. The aim of the legislation is to address concerns raised by Canada’s media industry regarding the dominance of tech companies in the online advertising market, which has negatively impacted news businesses.
Meta’s platforms to stay away from news in Canada
Meta confirmed that news availability will be terminated on Facebook and Instagram in Canada before the Online News Act takes effect. Facebook had previously expressed its stance that news holds no economic value for the company and that its users do not primarily utilize the platform for news consumption.
The Online News Act includes provisions that compel platforms like Facebook and Google to negotiate commercial agreements and compensate news publishers for their content. This approach mirrors a groundbreaking law enacted in Australia in 2021.
However, US technology companies have argued that the proposed measures are unsustainable for their businesses. Google, in particular, has highlighted the broader scope of Canada’s law compared to similar legislation in Australia and Europe. Google suggested revising the bill to base payment on the display of news content instead of links and to limit eligibility to businesses that produce news and adhere to journalistic standards.
The company emphasized the need to work collaboratively with the government to find a mutually agreeable solution.
Meta and Google’s “bullying tactics”
The Canadian federal government has resisted calls for amendments thus far. Prime Minister Justin Trudeau criticized Meta and Google for using “bullying tactics” in their opposition to the legislation.
In the past, both companies had threatened to restrict their services in Australia when similar rules were introduced. However, they ultimately reached agreements with Australian media organizations following amendments to the legislation.
Heritage Minister Pablo Rodriguez, who introduced the bill, stated that the government would engage in a regulatory and implementation process after the legislation is enacted.
The heritage ministry has held meetings with Facebook and Google recently and anticipates further discussions. Danielle Coffey, president of the News Media Alliance global industry group, commended the Canadian Parliament for taking a stand against Big Tech with the approval of the bill.
Coffey expressed optimism regarding the growing recognition of the necessity for legal measures to ensure fair compensation in Canada and worldwide, and she hopes to see the United States follow suit.
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