The bill, known as the Online News Act, was passed by the Canadian Senate on Thursday and will become law after receiving royal assent — a formality.
Photo: Reuters
The legislation was proposed after complaints from the Canadian media industry that wanted tighter regulation of tech companies to prevent them from squeezing news organizations in the online advertising market.
“Today, we confirm that Facebook and Instagram will stop providing news to all users in Canada before the Online News Act comes into effect,” Meta said in a statement.
Facebook has been touting such a move for weeks, saying that news has no economic value to the company and that its users do not use the platform to consume news.
Canada's News Act introduces rules to force platforms like Facebook and Google to negotiate commercial deals and pay news publishers for their content, much like the groundbreaking news act passed in Australia in 2021.
US tech companies say the proposals are unsustainable for their businesses. Google has argued that the Canadian law is broader than those in Australia and Europe, saying it sets a price for news links displayed in search results.
A Google spokesperson said Thursday that the bill remains “unworkable” and that the company is in urgent talks with regulators. The Canadian government has so far been adamant in defending the law. Earlier this month, Prime Minister Justin Trudeau said Meta and Google were using “bullying tactics” to fight the law.
Google and Facebook also threatened to cut off their services in Australia when a similar bill was passed into law. Both eventually reached agreements with Australian media companies after changes to the law were introduced.
Canadian Heritage Minister Pablo Rodriguez, who introduced the bill last year, said Thursday that the Canadian government “will engage in an implementation and management process” once the law comes into effect.
“If the government can’t protect Canadians from the tech giants, who will?” Rodriguez said in a statement. Danielle Coffey, president of the global industry group News Media Alliance, said the Canadian Parliament “should be applauded” after the bill passed.
“We are encouraged by the growing recognition of the need for legal action to get justice for ourselves, both in Canada and elsewhere, and hope to see the United States follow suit,” Coffey said.
Hoang Hai (according to Reuters, FT)
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