In response to the passing of the Online News Act by the Canadian Senate, tech giant Meta, the parent company of Facebook and Instagram, announced it is preparing to cease the dissemination of news on these platforms within Canada. This decision arises in direct reaction to Bill C-18, a legislative piece that requires tech companies such as Meta and Google to negotiate agreements with news publishers regarding compensation for the usage of their content.
Meta has persistently demonstrated opposition to the Online News Act since its inception. Nick Clegg, Meta’s President of Global Affairs, shared in a statement issued in May that societal transformation is an unyielding process and news publishers must evolve to keep pace. Drawing a parallel with the paradigm shift from traditional to digital communication, Clegg likened the new law to forcing email service providers to finance the postal service due to dwindling usage of regular mail. He firmly stated that Meta should not be required to underwrite news publishers for content that does not hold significant value for its users.
In anticipation of the new legislation coming into effect, Meta disclosed on June 1st that it would commence the withdrawal of news content from its platforms as part of a preliminary measure. The Associated Press reported that following royal assent, Bill C-18 is slated to come into effect half a year later.
However, Meta’s decision to suspend news dissemination has been contested by Pablo Rodriguez, Canada’s Minister of Canadian Heritage. Addressing the issue on Twitter, Rodriguez clarified that, as it stands, Meta has not yet been mandated to fulfill any obligations under the act. He stated that once Bill C-18 receives royal assent, the Government plans to undertake a comprehensive process of regulation and implementation.
In the meantime, Google is also navigating its course through the implications of the new legislation, having already trialed limiting access to news content for certain Canadian users. The company conveyed to The Verge that it is actively communicating with the Canadian government to establish a mutually agreeable resolution.
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Jenn Crider, a Google spokesperson, assured that the company is committed to mitigating undesired outcomes. Crider revealed that Google proposed numerous reasonable and practical solutions that could have refined the bill and fostered an environment conducive to Google’s increased investment in Canada’s news ecosystem. Nevertheless, these proposals have yet to be acknowledged, according to the National Post. The company is reportedly engaged in critical discussions with Rodriguez.
Notably, this is not the first time Meta has resorted to withdrawing news from its platforms due to legislative developments. In 2021, Meta temporarily eliminated news content from Facebook in Australia in response to a similar legislation. However, after the Australian government revised the law, the news content was subsequently reinstated, suggesting a potential precedent for the current situation in Canada.
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