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New Canadian Law Hamstrings Google and Facebook

Facebook Mark Zuckerberg not Running for President

Google and Meta/Facebook will need to change their policies in Canada after the Canadian Parliament passed a new law that will require them to pay publishers for reposting their news content. Facebook already said it will cease providing new access on both Facebook and Instagram for users in Canada.

Called the Online News Act, the new law will establish a “flexible regulatory framework that facilitates fair business relationships between digital platforms and news outlets.” The law is expected to ensure “fair revenue sharing between digital platforms and news outlets” and provides for collective bargaining by news outlets. It also establishes a mandatory arbitration framework when digital platforms and news outlets cannot reach commercial agreements.

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“Digital platforms have come to play an integral role in Canada’s news ecosystem, shifting the way Canadians access news content that is vital to democracy,” stated the Canadian government. “These platforms can play an important role in supporting the production of trusted news and information as well.

“A strong, independent and free press is fundamental to our democracy,” Pablo Rodriguez, the Canadian Minister of Canadian Heritage wrote on Twitter. “The Online News Act will help make sure tech giants negotiate fair and equitable deals with news organizations.”

“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/Facebook said in a statement. “The changes affecting news content will not otherwise impact Meta’s products and services in Canada. We want to assure the millions of Canadians on our platforms that they will always be able to connect with friends and family, grow their businesses and support their local communities.”

“We have repeatedly shared that in order to comply with Bill C-18, which was passed today in Parliament, content from news outlets, including news publishers and broadcasters, will no longer be available to people accessing our platforms in Canada,” said Lisa Laventure, head of communications for Meta in Canada.

Google was less magnanimous in its response calling the new law “unworkable” in a statement.

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