Canada’s federal government has taken the decision to remove all government advertisements from Facebook and Instagram in direct response to parent company Meta’s recent move to restrict news content for Canadian users. The decision follows the approval of a parliamentary law that obliges tech firms to compensate media organizations for the use of news content.
On Wednesday, Canadian officials firmly expressed their support for the law and their refusal to be intimidated by Meta’s actions. They have also been in communication with other countries that are planning to enact similar legislation, showcasing a growing international consensus on the issue.
In a parallel development, Google has announced its intention to block Canadian news within the country as a response to the forthcoming implementation of the Online News Act, also known as Bill C-18, in approximately six months. However, Canadian officials remain optimistic about the possibility of negotiating an agreement with Alphabet, Google’s parent company, to avert the impending block.
While Minister of Heritage Pablo Rodriguez believes that Google’s concerns can be addressed through the regulatory framework of the law, he expressed disappointment with Meta’s lack of engagement and labeled their decision to block news content for Canadians as “unreasonable and irresponsible.”
Rodriguez estimates that Meta’s platform will suffer a loss of approximately C$10 million ($7.54 million; £5.93 million) in business due to the Canadian government’s withdrawal of advertising. Although this may seem like a drop in the bucket for Meta, which reported an annual revenue exceeding $116 billion in 2022, Canada aims to send a resolute message that it will not succumb to intimidation.
Furthermore, Canada’s action is expected to inspire other entities, including Canadian companies, to follow suit. Media firms Quebecor and Cogeco, both based in the province of Quebec, have already announced their decision to withdraw advertisements from Meta’s platforms.
In response to these developments, Meta criticized Bill C-18 as flawed legislation that fails to acknowledge the operational realities of their platforms. The Canadian government contends that the bill is essential to ensure struggling news organizations receive fair compensation for their news content and links shared on technology platforms.
Australia enacted a similar law in 2021, which prompted Meta to temporarily block users in the country from sharing or viewing news on its platform. However, the blackout ended when amendments were made, and subsequently, Google and Meta negotiated more than 30 agreements with Australian media companies.
Prime Minister Justin Trudeau believes that Canada has become a global test case for laws like Bill C-18, suggesting that tech giants aim to make an example of the country. He criticized Meta’s decision to reject Canada’s requests and launch an attack, asserting that they made the wrong choice by targeting Canada.
Minister Rodriguez disclosed that Canada has engaged in discussions with other countries, including the UK, Indonesia, and Brazil, regarding their similar legislative efforts. The nation has also garnered support from certain US senators and pundits, who encourage Canada not to yield to the tantrums of tech giants.
Meta has already initiated limited access to news content for a small percentage of Canadian users as part of their testing phase and plans to implement a complete blackout in the coming weeks. Instagram users have reported encountering a message stating, “In response to Canadian government legislation, news content can’t be viewed in Canada” when attempting to access news-related content.
