SUMMARY
- Meta, parent company of Facebook and Instagram, blocks news access in Canada in response to the recently passed Online News Act (Bill C-18).
- This strategy replicates Meta's previous reaction to a similar law in Australia, which eventually resulted in a negotiation period with media outlets.
- In a parallel move, Meta threatens to remove news access in California if a new bipartisan bill requiring content payment to news outlets is passed.
Meta, the parent company of Facebook and Instagram, recently confirmed that it would be cutting off access to news on both platforms for users based in Canada. This decision is a response to the Canadian government's recent enactment of the Online News Act, better known as Bill C-18. This legislation necessitates that tech giants pay content-related fees to domestic media agencies.
Thursday's statement from Meta outlined that their objective is to adhere to Bill C-18, which passed in Parliament on the same day. As a result, Meta’s platforms in Canada will no longer display content from news publishers and broadcasters. The company further stated that they are currently implementing extensive product tests to solidify this transition, aiming to "end news availability in Canada".
This strategic response is not new for Meta. Last year, a comparable law was enacted in Australia, obligating digital platforms like Facebook and Google to compensate domestic media outlets when their content is linked on these platforms. Meta reacted by blocking Australian users from viewing or sharing news content on Facebook, including certain pages for hospitals and emergency services.
However, within a week, Meta softened its stance and brokered a deal with the Australian government. They agreed to amendments allowing tech companies a two-month window to negotiate with media outlets. The situation in Canada seems to mirror this past event.
This month, California's lawmakers also passed a bipartisan bill that would force digital platforms to pay news outlets for hosting their content. This move is the first of its kind in the U.S. If approved by the state Senate and converted into law, online platforms with either 50 million monthly active U.S. users, a billion worldwide active users, or a U.S. net annual sales or market cap over $550 billion, would be required to pay eligible media outlets for content hosting. Meta echoed its Canadian approach, stating that it would also remove news from Facebook and Instagram in California if the law passed.
WOM Money Picks
Be a part of the winning team | 81% Success Rate.