The Canadian Senate recently approved a new legislation, known as the Online News Act, that mandates Google and Meta to compensate media outlets for the usage or sharing of news content on their platforms. It became law after receiving royal assent from the governor general. This development signifies a shift in the country’s approach to ensuring fair compensation for news organizations when their content is utilized by major tech platforms.
In as much as the country recognises the integral role of digital platforms in Canada’s news ecosystem, it is trying to ensure a level playing field between news businesses and large digital platforms to create greater fairness to ensure sustainability of the news industry.
By adopting a market-oriented strategy, the act encourages voluntary commercial agreements between news businesses and platforms, minimizing direct government involvement. It also includes vital safeguards to uphold the press’s independence, ensuring the preservation of a free and unbiased media.
In reaction to this, Meta stated that “news availability will be ended on Facebook and Instagram for all users in Canada prior to the Online News Act (Bill C-18) taking effect.” “We have repeatedly shared that in order to comply with Bill C-18, content from news outlets, including news publishers and broadcasters, will no longer be available to people accessing our platforms in Canada,” it added.
“Changes to access to news content will have no further impact on Meta’s products and services in Canada. We want to assure the millions of Canadians who use our platforms that they can always stay connected with friends and family, grow their businesses and support their communities.
Though Meta has not given details about the timeline for this move, it said it will pull local news from its two social media sites – Facebook and Instagram – before the Online News Act takes effect.
Reuters reports that a Google spokesperson said on Thursday that the bill remains “unworkable” and that the company was urgently seeking to work with the government “on a path forward.”
The bill will come into force six months after the receipt o the royal assent.
