The Canadian government has decided to stop spending approximately CAD 10 million per year on Facebook and Instagram ads due to an ongoing disagreement with Meta-owned platforms over a new law concerning the compensation of online news publishers.
The move comes as Google and Meta, the parent company of Facebook and Instagram, announced their intentions to end news access on their platforms in Canada following the passing of Bill C-18, also known as the Online News Act.
The Online News Act, which was passed into law last month, mandates digital giants like Google and Meta to establish commercial agreements for compensating Canadian news outlets when users access articles through their products. Failure to comply may result in binding arbitration. The legislation was introduced in response to calls from Canada’s media industry for stricter regulations on internet giants to help news businesses recover financial losses incurred during the rise of Facebook and Google in the online advertising market.
Heritage Minister Pablo Rodriguez expressed the government’s stance, stating, “We cannot continue paying advertising dollars to Meta while they refuse to pay their fair share to Canadian news organisations.” He highlighted the need for a resolution to the dispute, affirming that the government remains open to continued discussions with the platforms.
Meta’s decision to block Canadian news on its platforms in response to the new law was deemed “unreasonable” and “irresponsible” by Rodriguez. The suspension of government advertising on Facebook and Instagram is estimated to cost the platforms around Can$10 million annually.
In addition to Google and Meta, Canadian telecoms operator Quebecor and radio station operator Cogeco have also announced their intentions to cease advertising on Facebook and Instagram due to Meta’s opposition to the Online News Act.
Prime Minister Justin Trudeau voiced his support for the government’s decision, asserting that Canadians would not be intimidated by American billionaires seeking to undermine their democracy. He further stressed that the government would stand firm on its position.
The implementation of the Online News Act aligns with similar initiatives globally, including Australia’s New Media Bargaining Code, which requires Google and Meta to pay for news content on their platforms. California legislators are also considering the enactment of a comparable policy.
The government’s suspension of Facebook and Instagram ads highlights the growing tension between tech giants and governments worldwide over fair compensation for news content. As the dispute continues, the Canadian media landscape remains hopeful for a resolution that can support the sustainability of news organisations and their valuable contributions to the public sphere.
