Meta Platforms, the parent company of Facebook and Instagram, has announced its plan to block access to news content on its platforms for all users in Canada once the Online News Act becomes law. The legislation, which has been approved by the Senate and is awaiting royal assent, aims to regulate tech companies and ensure they pay news publishers for their content. The Canadian media industry has been advocating for tighter regulations to prevent tech giants from dominating the online advertising market at the expense of news businesses.
In response to the upcoming law, Meta has stated that news has no economic value for their platforms and that their users do not primarily use them for news consumption. Facebook had been hinting at such a move for some time. The Online News Act is similar to Australia’s groundbreaking law passed in 2021, which compelled Facebook and Google to negotiate commercial agreements with news publishers.
Tech companies, including Google, have argued that the proposed legislation is unsustainable for their business models. Google has specifically raised concerns about the broad scope of Canada’s law, which encompasses news story links displayed in search results and may apply to outlets that do not produce news content. Google has suggested revising the bill to base payments on the display of news content instead of links and to limit eligibility for payment to businesses that produce news and adhere to journalistic standards.
Google has described the bill as “unworkable” and expressed a desire to collaborate with the government on finding a way forward. The Canadian government, led by Prime Minister Justin Trudeau, has resisted calls to amend the legislation and accused Meta and Google of using “bullying tactics” in their campaign against the law. In Australia, similar rules prompted Google and Facebook to threaten service reductions, but they ultimately reached agreements with Australian media companies after amendments were made to the legislation.
Heritage Minister Pablo Rodriguez, the bill’s introducer, stated that the government would engage in a regulatory and implementation process once the law takes effect. The heritage ministry has held meetings with Facebook and Google and is open to further discussions. The approval of the bill in the Senate has been praised by Danielle Coffey, president of the News Media Alliance global industry group, who commended the Canadian Parliament for taking a stand against Big Tech. Coffey expressed hope that the United States would follow suit in recognizing the need for legal measures to ensure fair compensation for news publishers.