After the enactment of a contentious online news bill by the parliament, Meta has declared its intention to limit news availability on its platforms exclusively to Canadian users.
In response to the bill's requirements for compensating news publishers for content shared on their platforms, Meta has made the decision, alongside Google, to conduct trials restricting news access to certain Canadian users.
It is worth noting that in 2021, Facebook implemented a similar measure in Australia, blocking users from sharing or accessing news content as a response to a comparable law.
Canada's recently passed Online News Act, which was approved by the senate, introduces regulations that compel platforms like Meta (formerly Facebook) and Google to engage in negotiations and financially compensate news organizations for their content.
Meta has criticized the legislation, deeming it "fundamentally flawed" and asserting that it disregards the operational realities of their platforms. Consequently, Meta announced that it will terminate news availability on Facebook and Instagram for all users in Canada even before the bill becomes effective.
A spokesperson from Meta informed Reuters, "A legislative framework that compels us to pay for links or content that we do not post, and which are not the reason the vast majority of people use our platforms, is neither sustainable nor workable." The company assured that the modifications to news access will not impact other services provided to Canadian users.
Similarly, Google expressed its concerns about the bill's feasibility in its current state and expressed its intention to collaborate with the government in order to find a viable solution moving forward.
The federal government argues that the online news bill is necessary to promote fairness in the Canadian digital news market and to enable struggling news organizations to obtain fair compensation for the news and links shared on these platforms.
According to an analysis conducted by an independent parliament budget watchdog, the online news bill could potentially result in news businesses receiving approximately C$329 million ($250 million; £196 million) annually from digital platforms.
Canadian Heritage Minister Pablo Rodriguez expressed dissatisfaction with the ongoing tests conducted by the tech platforms, deeming them "unacceptable" and a "threat."
In a similar context, Facebook restored news content to its users in Australia following negotiations and subsequent amendments made in collaboration with the government.
Regarding the current situation, Minister Rodriguez's office confirmed that he had recently met with representatives from Google and Facebook and planned further discussions. However, the government intends to proceed with the implementation of the bill.
In a statement, Minister Rodriguez emphasized the government's commitment to protecting Canadians from the influence of tech giants, stating, "If the government can't stand up for Canadians against tech giants, who will?"
Media industry groups welcomed the passage of the bill, viewing it as a significant step towards achieving market fairness.
Paul Deegan, president and CEO of News Media Canada, a media industry group, stated, "Real journalism, created by real journalists, continues to be demanded by Canadians and is vital to our democracy, but it costs real money."
The Online News Act is expected to become effective in Canada within a six-month timeframe.