Meta Platforms announced its intention to block access to news content on Facebook and Instagram for all users in Canada, in response to a newly approved legislation that requires internet giants to pay news publishers.
The company made this announcement on Thursday, shortly after the Canadian Senate upper chamber approved the legislation, known as the Online News Act, which has now received royal assent from the governor-general making it an official Act.
Once the Online News Act becomes law, Meta Platforms will implement measures to restrict the availability of news articles and related content on their popular social media platforms in Canada. The move follows a global trend of tech companies grappling with regulations aimed at ensuring fair compensation for news publishers for their content.
On Thursday, the Canadian Senate approved the Online News Act, establishing guidelines that compel platforms like Meta (formerly known as Facebook) and Google to engage in commercial negotiations and financially compensate news organizations for their content.
Meta has voiced its concerns about the legislation, criticizing it as “fundamentally flawed” and disregarding the operational realities of their platforms. In response, the company announced on Thursday its decision to terminate access to news on Facebook and Instagram for all Canadian users, preempting the bill’s official implementation. The decision to limit news access is likely to impact millions of users in Canada who rely on Facebook and Instagram as sources of news.
With Meta’s announcement, the focus now shifts to how news publishers, users, and other stakeholders will navigate this altered landscape of social media news consumption in Canada. Already Meta Platforms Inc and Google have been conducting trials to restrict news access in Canada in anticipation of the parliament-approved legislation, which requires major platforms to compensate news publishers for content posted on their platforms. This move comes after a similar law in Australia prompted Facebook to block users from sharing or viewing news in 2021.
What is Canada’s Online News Act?
The Online News Act is a new legislation that aims to ensure fair bargaining between the largest digital platforms and Canadian news businesses for the use of news content on their services.
The Online News Act establishes a more level playing field between news businesses and digital platforms, promoting fairness and sustainability in the news industry. It adopts a market-based approach, encouraging voluntary commercial agreements while preserving the independence of the press through crucial safeguards.
With millions of Canadians relying on online platforms for news consumption, these platforms have become the gatekeepers of the digital news marketplace and hence need to compensate the actual news agencies. The Canadian Radio-television and Telecommunications Commission (CRTC) will be responsible for overseeing the Act, facilitating negotiations and arbitration processes between platforms and news businesses. Additionally, the CRTC will develop a code of conduct to ensure fairness and transparency during bargaining.
US tech firms argue that the legislation in Canada is economically unfeasible. Google has suggested amendments to address concerns, while Canada’s government has resisted making changes. Prime Minister Justin Trudeau accused Meta and Google of employing “bullying tactics.” Heritage Minister Pablo Rodriguez, the bill’s initiator, stated that the government will initiate regulatory and implementation procedures following the law’s enforcement.
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