The Canadian government has announced that it will withdraw all its advertising from Facebook and Instagram. This action comes in the wake of Meta, the parent company of Facebook and Instagram, banning news content for Canadian users in response to the passage of Bill C-18, also known as the Online News Act, whereby the government tried to force Meta to hand over cash to legacy news outlets.
Bill C-18, which obligates tech companies to compensate media outlets for news content, has been met with resistance from Meta.
Minister of Heritage Pablo Rodriguez, who is in the spotlight, has expressed that Google has been more forthcoming in discussions and that their concerns could be addressed within the ambit of the law’s regulations. In contrast, Meta has been giving Canadian officials the cold shoulder. “Meta are not talking to us,” remarked a rather dismayed Rodriguez, who went on to characterize Meta’s decision as “unreasonable and irresponsible.”
source: Rebel News
Though the Canadian government’s choice to withdraw advertising from Meta’s platforms might seem like a mere pinprick to the tech behemoth, which boasted a staggering revenue north of $116 billion in 2022, it is symbolic.
In defense of the bill, the Canadian government articulated that it is a lifeline for besieged news organizations who refuse to change their business model and instead want Meta to just hand them cash to stay afloat.
A parallel can be drawn with Australia, where a law was ratified in 2021. However, after a brief standoff with Meta, which included a news blackout, the law was amended. Subsequently, Google and Meta entered into a slew of deals with Australian media companies.
Prime Minister Justin Trudeau opined that Canada is now on the world stage as a litmus test for legislation similar to Bill C-18. He asserted that tech giants, including Meta, have singled out Canada to make an example of it, which he considers an attack on “democracy.”
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