Facebook ending news sharing in Canada as new law forces payment to publishers
Facebook and Instagram will be cutting off access to news content for all users in Canada following the approval of the Online News Act by the Canadian parliament. The act mandates that internet giants like Facebook and Google negotiate deals with and compensate news publishers for their content. This move mirrors a similar law passed in Australia in 2021. However, US technology companies argue that these proposals are unsustainable for their businesses. Google, in particular, has claimed that Canada’s law is stricter than those implemented in Australia and Europe and has proposed amendments to address its concerns.
Canadian Prime Minister Justin Trudeau has accused Facebook and Google of using “bullying tactics” in their opposition to the legislation. Heritage Minister Pablo Rodriguez, who introduced the bill, stated that the government will engage in regulatory and implementation processes once the legislation is in effect. Google’s spokesperson, Shay Purdy, expressed the company’s desire to work with the government to find a solution, highlighting their previous proposals. Meetings between the heritage ministry and Facebook and Google have already taken place, with further discussions expected.
The Online News Act was introduced in response to complaints from Canada’s media industry, which is seeking tighter regulations for tech companies to prevent them from dominating the online advertising market and squeezing out news businesses. News Media Alliance President Danielle Coffey praised the Canadian parliament’s decision, stating that the move recognizes the need for legal action to ensure fair compensation for news publishers. Coffey also expressed hope that the United States would follow in Canada’s footsteps.
FAQs:
1. Why is Facebook cutting off access to news in Canada?
Facebook is cutting off access to news content in Canada in response to the approval of the Online News Act, which requires internet giants to negotiate deals with and compensate news publishers. Facebook, along with other US technology companies, argue that these proposals are unsustainable for their businesses.
2. What is the Online News Act?
The Online News Act is legislation passed by the Canadian parliament that mandates internet giants like Facebook and Google to negotiate commercial deals and pay news publishers for their content. This law is similar to one implemented in Australia in 2021.
3. Why are US tech companies opposing the legislation?
US technology companies, including Facebook and Google, argue that the legislation is unworkable and will negatively impact their businesses. They claim that the Canadian law is stricter than similar laws in Australia and Europe and have proposed amendments to address their concerns.
4. What has been the response from the Canadian government?
Prime Minister Justin Trudeau has accused Facebook and Google of using “bullying tactics” in their campaign against the legislation. Heritage Minister Pablo Rodriguez, who introduced the bill, has stated that the government will engage in regulatory and implementation processes once the legislation takes effect.
5. What are the concerns of Canada’s media industry?
Canada’s media industry is concerned about the dominance of tech companies in the online advertising market, which can push out news businesses. They are seeking tighter regulations to level the playing field and ensure fair compensation for news publishers.
6. How has the News Media Alliance responded?
News Media Alliance President Danielle Coffey commended the Canadian parliament for requiring tech companies to compensate news publishers for their articles. Coffey hopes that the United States will follow suit and take similar legal action to ensure fair compensation for news publishers.
Canadian Facebook Stops News Sharing as Requirement of Paying Publishers Comes into Effect
Meta Platforms announced on Thursday that it would no longer provide access to news on Facebook and Instagram for all users in Canada. This decision comes after Canada’s parliament passed the Online News Act, a legislation that aims to compel internet giants to pay publishers for news content. Mark Zuckerberg’s Meta confirmed this move in a statement, stating that news availability will cease before the Online News Act takes effect. The act, similar to Australia’s groundbreaking law implemented in 2021, requires platforms like Facebook and Google to negotiate commercial deals and pay news publishers for their content. However, US technology companies argue that these proposals are unsustainable for their businesses. Google, in particular, has expressed concerns, stating that Canada’s law is even more stringent than those enacted in Australia and Europe and proposing amendments to address these issues. Despite their objections, Meta and Google will need to comply with the legislation. Canada’s federal government has remained firm in its position, with Prime Minister Justin Trudeau accusing Meta and Google of using “bullying tactics” to oppose the law. Heritage Minister Pablo Rodriguez, responsible for introducing the bill, stated that the government will engage in a regulatory and implementation process once the legislation is in effect. Google has attempted to find common ground and offered “thoughtful and pragmatic solutions,” but it maintains that the bill is unworkable. The heritage ministry has held meetings with both Facebook and Google, and further discussions are expected. The new legislation was prompted by concerns from Canada’s media industry, which seeks tighter regulation of tech companies to protect news businesses from being overshadowed in the online advertising market. The approval of the bill in the Senate has garnered support from industry groups, such as the News Media Alliance, who laud Canada’s efforts to require compensation for news publishers. Danielle Coffey, president of the News Media Alliance, commends Canada and expresses hope that the United States will follow suit. As Meta’s decision to end news availability in Canada takes effect, the government and tech giants continue to navigate discussions and seek a way forward.