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Facebook and Instagram's parent company Meta says it will end access to news on its platforms in Canada after that country's parliament passed legislation requiring internet giants to pay publishers.
Key points:
- Meta will remove access to news on Facebook and Instagram for Canadian users
- Google is exploring its options and negotiating with the government
- Traditional media is praising the bill
The law will force the social media companies to negotiate commercial deals with news outlets and pay for news content.
"We have repeatedly shared that in order to comply [with the new law] … content from news outlets, including news publishers and broadcasters, will no longer be available to people accessing our platforms in Canada," said Meta spokesman Scott Reid.
Meta did not say when the ban would kick in but said it would pull local news from its sites before the new law takes effect in six months' time.
The company is already running a trial which blocks news for up to 5 per cent of its Canadian users.
Google ran a similar test earlier this year and has hinted that removing news links from its popular search engine is a possibility.
In 2021, Meta briefly blocked news from its platforms in Australia, and Google threatened to do so, when similar laws were passed.
Both eventually struck deals with Australian media companies after amendments to the legislation were offered.
Government says it's standing up against tech giants
Canadian Heritage Minister Pablo Rodriguez, who introduced the bill last year, has promised to push back on what he describes as "threats" from Facebook and Google to remove journalism from their platforms.
"If the government can't stand up for Canadians against tech giants, who will?" Mr Rodriguez said in a statement.
Earlier this month, Prime Minister Justin Trudeau said Meta and Google were using "bullying tactics" to campaign against the legislation.
US tech companies say the proposals are unsustainable
Facebook has been signalling its willingness to remove news from its platform for weeks.
The company says news has no economic value and its users do not use the platform to access news.
Google has argued Canada's law is broader than those enacted in Australia and Europe, saying it puts a price on news story links displayed in search results and can apply to outlets that do not produce news.
It proposed that the bill be revised to make the displaying of news content, rather than links, a basis for payment, and to specify that only businesses that produce news and adhere to journalistic standards are eligible.
Google spokesperson Shay Purdy said the bill remained "unworkable" despite the proposed "thoughtful and pragmatic solutions".
"We are continuing to urgently seek to work with the government on a path forward," Mr Purdy said.
Canada's federal government has so far pushed back against suggestions to make changes.
The heritage ministry has had meetings with Facebook and Google, and is looking forward to further discussions, a government spokesperson said.
Advocates say law creates level playing field
The legislation was proposed after complaints from the country's media industry, which wants tighter regulation of tech companies to prevent them from elbowing news businesses out of the online advertising market.
Tech giants including Meta and Google have been blamed in the past for disrupting and dominating the advertising industry, eclipsing smaller, traditional players.
Legacy media and broadcasters have praised the bill, which promises to "enhance fairness" in the digital news marketplace and help bring in more money for shrinking newsrooms.
Danielle Coffey, the president of the News Media Alliance global industry group, said she applauded the Canadian parliament's stance.
"We are encouraged by the increasing recognition of the need for legal action to ensure just compensation, both in Canada and abroad, and hope to see the United States follow suit," Ms Coffey said.
Reuters/AP/ABC