Canada ceases Facebook and Instagram ads amidst a news dispute.
The Canadian federal government has announced that it will withdraw all its advertising from Facebook and Instagram in response to parent company Meta’s decision to restrict news content for Canadians. This move comes after the passing of a law in parliament that will require tech firms to pay media outlets for news content. Canadian officials expressed their support for the law and stated that they would not be intimidated by Meta’s actions. They have also been in contact with other countries planning to pass similar legislation.
Google has also revealed plans to block Canadian news in the country once the Online News Act, also known as Bill C-18, takes effect in about six months. However, Canadian officials remain hopeful that they can negotiate a deal with Google’s parent company, Alphabet, to prevent the block from happening. In contrast, there has been limited engagement from Meta in finding a way forward with the Canadian government.
The decision to pull all advertising from Meta’s platforms is estimated to cost the company C$10 million ($7.54 million; £5.93 million) in business. While this loss may be relatively small for Meta, Canadian officials aim to send a message that they will not be intimidated. They hope that their actions will inspire other companies, including Canadian firms, to take a similar stance.
Meta, in response, stated that Bill C-18 is flawed legislation that disregards the operational realities of their platforms. The Canadian government argues that the bill is necessary to ensure fair compensation for news shared on tech platforms and support struggling news organisations.
Canadian Prime Minister Justin Trudeau believes that Canada has become a global test case for laws like Bill C-18. The country has been discussing its legislation with other nations, including the UK, Indonesia, and Brazil, which are looking to implement similar laws. Support for Canada’s law has also been seen from some US senators and pundits.
Meta has already begun testing restricted access to news content for a small percentage of Canadian users and plans to implement a full blackout in the coming weeks. Instagram users have reported seeing a message indicating that news content cannot be viewed in Canada due to government legislation.
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