Canada stops advertising with Facebook and Instagram in news row

The Canadian federal government has announced its decision to withdraw all advertising from Facebook and Instagram in response to Meta’s move to limit news content for Canadians following the passage of a law that requires tech companies to pay media organizations for news. Canadian officials reaffirmed their commitment to the law and stated that they will not be intimidated by Meta’s actions. They have been in contact with other countries that plan to enact similar legislation.

Google has also revealed plans to block Canadian news in response to the Online News Act, also known as Bill C-18, which will come into effect in approximately six months. However, Canadian officials expressed optimism that they can negotiate an agreement with Google’s parent company, Alphabet, to prevent the news block.

While the loss of government advertising represents a relatively small sum for Meta, whose annual revenue in 2022 exceeded $116 billion, the Canadian government aims to send a message that it will not be intimidated. It is hoped that this move will inspire other entities, including Canadian companies, to follow suit. Quebec-based media firms Quebecor and Cogeco have also stated their intentions to pull advertisements from Meta.

In response to the developments, Meta criticized Bill C-18, labeling it as flawed legislation that fails to consider the functioning of their platforms. The federal government argues that the bill is necessary to enable struggling news organizations to receive fair compensation for their news and the sharing of links on tech platforms.

Similar legislation was enacted in Australia in 2021, leading to temporary user blockages on Meta platforms. Amendments were subsequently made, and Google and Meta have since negotiated numerous deals with Australian media companies.

Canadian Prime Minister Justin Trudeau believes that Canada has become a test case for such laws globally, stating that tech giants like Meta aim to make an example out of the country. Minister of Heritage Pablo Rodriguez emphasized that Canada has been in discussions with other countries, including the UK, Indonesia, and Brazil, regarding similar legislation.

The implementation of Meta’s news restrictions has already begun in Canada, with access to news being limited to a small percentage of users in tests. A complete blackout is planned in the coming weeks.