Rosalind Evans
The Canadian Senate approved a bill that legally mandates Google and Meta to remunerate media organizations for news content utilized or distributed via their services.
This legislation, which is primed to become law, was passed during an ongoing face-off between the government of Prime Minister Justin Trudeau and the tech powerhouses of Silicon Valley.
The Canadian government believes this law will establish an equitable platform between the behemoths of online advertising and the dwindling news sector. The Canadian Heritage Minister Pablo Rodriguez has pledged to counter the so-called “threats” from Google and Facebook to delete journalism from their platforms.
In response to the bill, Meta affirmed its intent to conform by eliminating the provision of news on Facebook and Instagram for its Canadian user base, as previously indicated. While Meta did not specify a timeline for this move, it stated that local news would be removed from its platforms before implementing the Online News Act. The Act will be enacted six months following its receipt of royal assent.
Lisa Laventure, Meta’s Head of Communications in Canada, stated, “To comply with the newly passed Bill C-18, content from news publishers and broadcasters will no longer be available for our Canadian users.”
Traditional media and broadcasters have lauded this bill, poised to “enhance fairness” in the digital news marketplace and help generate more funds for contracting newsrooms. Tech heavyweights like Meta and Google have previously been accused of destabilizing and monopolizing the advertising industry, overshadowing smaller, traditional competitors.
Meta, headquartered in Menlo Park, California, has adopted similar measures previously. In 2021, it momentarily blocked news on its platform in Australia following the passage of a law that required tech firms to pay for the usage of news stories from publishers. Meta eventually brokered agreements with Australian publishers.
Laura Scaffidi, a representative for Minister Rodriguez, mentioned a scheduled meeting between Rodriguez and Google, which has alluded to the possible removal of news links from its renowned search engine. Google declined to comment on this issue.
Meta is currently running a trial that obstructs news access for up to five percent of its Canadian users, mirroring a similar test conducted by Google earlier in the year.
The Online News Act will obligate both firms to enter into agreements with news publishers for compensation for news content displayed on their platforms that financially benefits these tech companies.
Scaffidi clarified, “Tech giants are not immediately obligated under the act once Bill C-18 is passed. All details will be publicized before any tech company is designated under the act.”
In a world increasingly dominated by digital media, this new law in Canada represents a significant step in addressing the growing power imbalance between tech giants and traditional media outlets. With tech companies effectively monetizing the news content produced by these outlets, the law seeks to bring about a fairer distribution of resources. It remains to be seen how other countries might follow Canada’s lead in this significant shift toward protecting the interests of the news industry.
