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Meta Platforms, the parent company of Facebook and Instagram, said it will block access to news for all users in Canada after Parliament approves the legislation.
What does Canada’s media bill say?
The legislation, known as the Online News Act, was proposed after complaints from Canada’s media industry, which wanted tougher regulations on tech companies to prevent them from crowding out news businesses from the online advertising market. The legislation is aimed at supporting the struggling Canadian news sector, which has shuttered hundreds of publications over the past decade.
The federal government introduced Bill C-18 in April 2022 with the intention of forcing digital giants such as Meta and Google to compensate news publishers for the use of their content. The bill was introduced as a way to support an industry that has been in steady decline since the advent of the Internet.
According to the government, more than 470 media outlets have been closed in Canada since 2008. Additionally, a third of journalism jobs were lost at the same time. Bill C-18 is based on tougher rules against Australian tech companies. Australia has become the first country to force digital companies to pay for access to news content.
What are Meta and Google saying?
Major tech companies strongly opposed the Canadian law. “Today, we are confirming that news availability on Facebook and Instagram will be eliminated for all users in Canada before the Online News Act goes into effect,” Matta said.
Earlier, Facebook had clearly stated that news has no economic value for the company and its users do not use the platform for news.
Google and Facebook have also threatened to cut their services in Australia if similar regulations are passed into law. Both eventually struck deals with Australian media companies after offering to amend the law.
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