Meta Platforms Inc, formerly known as Facebook, intends to discontinue news access on Facebook and Instagram for all users in Canada once the parliament-approved Online News Act takes effect, according to the company’s statement on Thursday.
The Online News Act, which recently gained approval from the Senate upper chamber and awaits royal assent, aims to address concerns raised by Canada’s media industry regarding tech companies’ impact on the online advertising market and seeks tighter regulation.
In its statement, Meta confirmed the termination of news availability, a decision in line with its previous indications that news holds no economic value for the company and that users primarily utilize the platform for non-news purposes.
The Online News Act establishes guidelines requiring platforms like Facebook and Google to engage in negotiations and financially compensate news publishers for their content, mirroring a pioneering law implemented in Australia in 2021.
US technology companies, including Google, have expressed concerns about the proposed legislation in Canada, deeming it unsustainable for their businesses. Google argues that the law is broader than those implemented in Australia and Europe, as it places a value on news story links displayed in search results and can encompass outlets that do not produce news.
The search engine giant has proposed revising the bill to base payment on the display of news content rather than links and to specify eligibility only for businesses that produce news and adhere to journalistic standards.
A Google spokesperson stated on Thursday that the bill remains “unworkable” and that the company is actively seeking collaboration with the government to find a way forward.
Canada’s federal government has resisted calls for amendments thus far, with Prime Minister Justin Trudeau accusing Meta (formerly Facebook) and Google of employing “bullying tactics” in their campaign against the legislation.
In Australia, Google and Facebook had also threatened to limit their services in response to similar laws. However, both companies reached agreements with Australian media organizations after amendments to the legislation were made.
Heritage Minister Pablo Rodriguez, who introduced the bill last year, announced that the government will engage in a regulatory and implementation process after the legislation is enacted.
Rodriguez stated in a statement, “If the government can’t stand up for Canadians against tech giants, who will?”
Meetings between the heritage ministry and Facebook and Google have taken place this week, and further discussions are anticipated, according to a government spokesperson.
Danielle Coffey, president of the News Media Alliance global industry group, commended the Canadian Parliament for standing up to Big Tech after the bill’s approval in the Senate.
Coffey added, “We are encouraged by the increasing recognition of the need for legal action to ensure just compensation, both in Canada and abroad, and hope to see the United States follow suit.”
Reuters
Published 7:52 PM EDT, Thu June 22, 2023