Online News Law Appears, Meta Platforms Inc Will Stop News Access On Facebook And Instagram For Canadian Users

Canadian Culture Minister Pablo Rodriguez (photo: twitter @pablorodriguez)

JAKARTA - Meta Platforms Inc., plans to end news access on Facebook and Instagram for all users in Canada after a law approved by the country's parliament that requires tech companies to pay news publishers in effect. This was disclosed by the company on Thursday, June 22.

The law, known as the Online News Act, was approved by the Senate High Council on Thursday and will become law after obtaining royal approval from the governor general, which is a formality.

The law comes after complaints from the Canadian media industry want stricter regulations against tech companies to prevent them from expelling news businesses from the online advertising market.

"Today, we confirm that the availability of news will be discontinued on Facebook and Instagram for all users in Canada before the Online News Act takes effect," Meta said in a statement.

Facebook has signaled the move for several weeks, saying that news has no economic value for companies and their users are not using the platform for news.

The law regulates rules to force Alphabet's Facebook and Google platforms to negotiate in commercial deals and pay news publishers for their content, a similar move to a breakthrough law passed in Australia in 2021.

The US technology company has stated that the proposal cannot be implemented in their business. Google argues that Canada's laws are broader than the laws imposed in Australia and Europe, saying that this law sets prices for news story links displayed in search results and can apply to media that do not produce news.

The search engine giant proposed that the law be revised to make broadcasting news content, not links, basic payments, and to mention that only businesses generate news and comply with eligible journalistic standards.

A Google spokesperson said last Thursday that the law remains "unable to be implemented" and that the company is actively looking for ways to cooperate with the government "to the right path".

Canada's federal government has so far rejected suggestions for making changes. Earlier this month, Prime Minister Justin Trudeau said that Meta and Google used "estimation tactics" when they fought the law.

Google and Facebook also threatened to limit their services in Australia when similar regulations were passed into law. The two eventually reached an agreement with Australian media companies after changes to the law.

Canadian Culture Minister Pablo Rodriguez, who introduced the law last year, said on Thursday that the government would "be involved in the regulatory process and implementation" after the law took effect.

"If the government can't protect Canadians from tech giants, who will do it?" Rodriguez said.