Investing
Facebook to end news access in Canada over incoming law on paying publishers
© Reuters. Facebook app logo is seen in this illustration taken, August 22, 2022. REUTERS/Dado Ruvic/Illustration
By Ismail Shakil and David Ljunggren
OTTAWA (Reuters) -Meta Platforms Inc plans to end access to news on Facebook (NASDAQ:) and Instagram for all users in Canada once a parliament-approved legislation requiring internet giants to pay news publishers comes into effect, the company said on Thursday.
The legislation, known as the Online News Act, was approved by the Senate upper chamber earlier on Thursday and will become law after receiving royal assent from the governor general, a formality.
The legislation was proposed after complaints from Canada’s media industry, which wants tighter regulation of tech companies to prevent them from elbowing news businesses out of the online advertising market.
“Today, we are confirming that news availability will be ended on Facebook and Instagram for all users in Canada prior to the Online News Act taking effect,” Meta said in a statement.
Facebook had telegraphed such a move for weeks, saying news has no economic value to the company and that its users do not use the platform for news.
The act outlines rules to force platforms such as Facebook and Alphabet (NASDAQ:)’s Google to negotiate commercial deals and pay news publishers for their content, a step similar to a groundbreaking law passed in Australia in 2021.
The U.S. technology companies have said the proposals are unsustainable for their businesses. 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.
The search engine giant proposed that the bill be revised to make the displaying of news content, rather than links, as basis for payment and to specify that only businesses that produce news and adhere to journalistic standards are eligible.
A spokesperson Google said on Thursday that the bill remains “unworkable” and that the company was urgently seeking to work with the government “on a path forward.”
Canada’s federal government has so far pushed back against suggestions to make changes. Earlier this month, Prime Minister Justin Trudeau said Meta and Google were using “bullying tactics” as they campaign against the legislation.
Google and Facebook had also threatened to curtail their services in Australia when a similar rules were passed into law. Both eventually struck deals with Australian media companies after amendments to the legislation were offered.
Heritage Minister Pablo Rodriguez, who introduced the bill last year, said on Thursday that the government “will engage in a regulatory and implementation process” after the legislation comes into effect.
“If the government can’t stand up for Canadians against tech giants, who will?” Rodriguez said in a statement.
The heritage ministry has had meetings with Facebook and Google this week, and it looks forward to further discussions, a government spokesperson said.
Danielle Coffey, president of the News Media Alliance global industry group, said the Canadian Parliament “should be applauded for standing up to Big Tech” after the bill’s approval in the Senate.
“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,” Coffey said.
Read the full article here
-
Side Hustles6 days ago
Mark Zuckerberg Is Now Second Richest Person in the World
-
Investing6 days ago
Nvidia CEO Jensen Huang: Demand For Blackwell AI Is Insane
-
Side Hustles7 days ago
How to Be Unapologetically You and Why It Matters
-
Side Hustles7 days ago
With AI Magicx, It’s Like Getting an Entire Creative Team in One Money-Saving AI Tool
-
Side Hustles6 days ago
Meta Previews Movie Gen, AI Tools That Turn Dreams to Videos
-
Investing4 days ago
Hurricane Helene Hits Spruce Pine Mine, Quartz Used for Tech
-
Passive Income7 days ago
How AI-Driven Personalization Is Transforming the Retail Industry
-
Investing6 days ago
BCA says investors should fade the real estate rally By Investing.com