Facebook's parent company, Meta, has announced its plans to restrict news access on its platforms for Canadian users following the passing of a controversial online news bill in parliament.
The bill mandates that major platforms compensate news publishers for the content posted on their sites. Both Meta and Google have already been conducting tests to limit news access for certain Canadian users. This move comes after Facebook blocked Australian users from sharing or viewing news in response to a similar law passed in 2021.
Canada's Online News Act, which recently cleared the senate, establishes regulations that require platforms like Meta and Google to negotiate commercial agreements and provide payment to news organizations for their content. Meta has criticized the law as "fundamentally flawed legislation that ignores the realities of how our platforms work." It has announced that news availability will be discontinued on Facebook and Instagram for all Canadian users before the bill takes effect.
Meta's spokesperson stated that a legislative framework compelling platforms to pay for links or content they do not post, and which are not the primary reason users utilize their platforms, is neither sustainable nor feasible. However, Meta assured Canadian users that these changes would not affect other services provided by the platform. Similarly, Google has deemed the bill "unworkable" in its current form and expressed its desire to collaborate with the government to find a viable solution.
The federal government of Canada argues that the online news bill is necessary to promote fairness in the Canadian digital news market and enable struggling news organizations to receive fair compensation for their news and shared links on these platforms. An analysis by an independent parliamentary budget watchdog estimated that news businesses could receive approximately C$329 million ($250 million; £196 million) annually from digital platforms.
Canadian Heritage Minister Pablo Rodriguez criticized the tests conducted by tech platforms as "unacceptable" and a "threat." While Facebook previously restored news content for its Australian users after negotiations with the government, Rodriguez's office stated that further discussions would take place but affirmed the government's intention to proceed with implementing the bill. Rodriguez emphasized the government's responsibility to stand up for Canadians against tech giants.
Industry groups within the media sector have welcomed the passage of the bill, considering it a significant step towards market fairness. Paul Deegan, President, and CEO of News Media Canada, a media industry group, highlighted the importance of real journalism created by professional journalists and its role in democracy, emphasizing that it incurs real costs. The Online News Act is expected to come into effect in Canada within six months. Photo by Minette Lontsie, Wikimedia commons.