Meta, the company that owns Facebook and Instagram, has taken a decisive step by blocking news content on its platforms for Canadian users. The move comes as a response to Canada's newly passed Online News Act, which aims to ensure fair revenue sharing between tech giants like Meta and Google and Canadian news outlets.
This legislation, similar to those previously proposed in Australia and California, has been a matter of contention, leading to a clash between Big Tech and Canadian news organizations.
The act in question
The Online News Act, or Bill C-18, is a piece of Canadian legislation passed by Parliament in June 2023. Its primary objective is to address the disruption caused by social media platforms like Facebook and Instagram to the traditional news distribution model.
Under this act, tech companies are required to compensate news outlets for sharing links to their pages, thus ensuring a fair distribution of revenue. The law is set to take effect no later than 180 days from the date of royal assent.
Meta's bold decision
Meta has been vocal about its opposition to the Online News Act since its proposal in 2021. The company had threatened to block the sharing of Canadian news content unless the legislation was amended to align with its interests.
However, with the passage of the law by Canada's Senate and impending royal assent, Meta made good on its threat and officially blocked access to news content on both Facebook and Instagram for all Canadian users. The decision is a significant departure from engaging with Canadian lawmakers to comply with the new legislation.
Other media companies are also concerned
Both Meta and Google, another tech giant affected by the Online News Act, have expressed their concerns about the legislation. They argue that the act is unfair, unworkable, and amounts to a "tax on links".
According to Meta's spokesperson, the legislation wrongly assumes that social media companies disproportionately benefit from news content shared on their platforms. Instead, Meta asserts that news outlets voluntarily share content on social media to expand their audiences and support their bottom line. This friction between the tech giants and Canadian lawmakers highlights the power imbalance between platforms and publishers.
How will it affect Canadians?
Canadian journalists and news outlets have already started reporting on the adverse effects of Meta's decision. Local newsrooms, which were already vulnerable to the policies set by social media platforms, are now facing zero visibility on Facebook and Instagram.
Co-founder of The Rover, Christopher Curtis, has taken to Twitter to express their concerns, with one co-founder of a local newsletter calling the fight with Meta a threat to their livelihoods. This clash is a significant challenge for Canadian news outlets that heavily relied on social media platforms for news distribution.
Hello @PascaleStOnge_, I know it’s important to save big newspapers but those of us who aren’t owned by ??vampire hedge funds need to put food on the table for our families. This fight with Meta is making that harder and harder. Our livelihoods are at stake. pic.twitter.com/UVatQxIpRu
— Christopher Curtis (@titocurtis) July 31, 2023
As the regulatory process begins, Google and Meta have both stated their intent to remove news links in Canada before the law comes into full effect.
The Heritage Minister, Pablo Rodriguez, has emphasized that the government will engage in a regulatory and implementation process following royal assent. He calls on tech giants to work with the government to find a path forward and avoid a situation where news content is entirely removed. The government's role in resolving the conflict and maintaining fair revenue sharing remains crucial.
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