Users in Canada will be barred from seeing Canadian news, according to parent firm Meta, after Ottawa approved legislation mandating the digital giants to pay for such content. Another critic of the Online News Act, Google, has previously stated that it is considering a similar approach. The two Silicon Valley titans have spoken out against the plan, which attempts to help Canada’s beleaguered journalism industry, which has seen hundreds of magazines close in the last decade.
“Exciting news! (No pun intended),” Heritage Minister Pablo Rodriguez tweeted after the bill cleared the Senate’s final obstacle on its approach to becoming law. He expressed disappointment over Meta’s decision to censor news content, but vowed to “stand up for Canadians against tech giants.” According to his office, officials met with Facebook and Google this week and are looking forward to additional negotiations concerning the new regulation.
Last month, Prime Minister Justin Trudeau chastised Meta for restricting Canadian news content for some users, calling the firm “deeply irresponsible and out of touch” for refusing to pay journalists for their work. He called opposition to the plan “flawed (and) dangerous to our democracy, to our economy.”
Google restricts news; Meta ends news availability for users in Canada
Google also temporarily restricted news access for Canadian users of its famous search engine in February. In a statement on Thursday, Meta said it was “confirming that news availability will be ended on Facebook and Instagram for all users in Canada.” “The changes affecting news content will not otherwise impact Meta’s products and services in Canada,” it added.
According to Jenn Crider, a Google spokesman, the company is “doing everything we can to avoid an outcome that no one wants” and is looking to collaborate with the government “on a path forward.” The corporation has submitted bill revisions, but Crider stated on Thursday, “So far, none of our concerns have been addressed.” The new rule requires digital behemoths to enter into fair economic agreements with Canadian media outlets in exchange for the news and information supplied on their platforms, or risk binding arbitration.
New Media Bargaining Code passed in Australia, impacting big tech
It builds on Australia’s world-first New Media Bargaining Code, which aims to make Google and Meta pay for news content on their platforms. Australia, too, accused the two dominant online advertising corporations of siphoning money away from conventional news organizations while exploiting their material for free. Big tech giants initially opposed the Australian legislation, thinking it would jeopardize their business models, but lawmakers easily passed it with revisions.
