OTTAWA, Ontario (AP) — The Senate of Canada passed a bill on Thursday that mandates Google and Meta (formerly Facebook) to compensate media organizations for the utilization and sharing of news content on their platforms.
This legislation, which is expected to be enacted, comes in the midst of a standoff between Prime Minister Justin Trudeau’s administration and major technology companies based in Silicon Valley.
The Canadian government asserts that this law establishes a fair playing field between the dominant online advertising giants and the struggling news industry. Pablo Rodriguez, the Minister of Canadian Heritage, has vowed to counter what he perceives as “threats” from Facebook and Google, who have hinted at removing journalism from their platforms.
Meta confirmed its intention to adhere to the bill by discontinuing the availability of news on Facebook and Instagram for Canadian users, as previously indicated. While Meta did not provide specific details regarding the timeline for this action, it affirmed that local news will be removed from its platform prior to the Online News Act coming into effect. The bill will be implemented six months after it receives royal assent.
Lisa Laventure, the head of communications for Meta in Canada, stated, “We have consistently communicated that as per the requirements of Bill C-18, which was approved today in Parliament, content sourced from news outlets, including news publishers and broadcasters, will no longer be accessible to users in Canada on our platforms.”
The bill has received accolades from established media outlets and broadcasters. It aims to “promote fairness” in the digital news market and contribute to generating additional revenue for struggling news organizations. Meta and Google, among other tech giants, have previously been criticized for disrupting and dominating the advertising industry, overshadowing smaller, traditional players.
Having encountered a comparable situation in the past, Meta, headquartered in Menlo Park, California, has taken similar measures. In 2021, it temporarily blocked news content on its platform in Australia following the enactment of legislation that mandated tech companies to compensate publishers for using their news articles. However, Meta subsequently reached agreements with Australian publishers to resolve the issue.
Laura Scaffidi, a spokesperson for Minister Rodriguez, revealed that he was scheduled to meet with Google on Thursday afternoon. Google has hinted at the possibility of removing news links from its widely used search engine, but the company did not provide any comment on the matter.
Both Meta and Google have conducted tests to gauge the impact of blocking news content. Meta is currently running a test that restricts news access for a maximum of five percent of its Canadian users, while Google conducted a similar test earlier this year.
Under the Online News Act, both companies are required to negotiate agreements with news publishers to compensate them for the appearance of news content on their platforms, provided it contributes to the tech giants’ revenue generation.
“The tech giants will not have immediate obligations under the act once Bill C-18 is passed. Throughout the process, all relevant details will be made public before any tech giant is designated under the act,” stated Scaffidi.
