In the words of the Meta Platforms Inc, if a parliament-approved legislation mandating internet firms to pay news publishers goes into force, all users in Canada will lose access to news on Facebook and Instagram.
The Online News Act, which was adopted by the Senate upper chamber earlier on Thursday, will become law after getting royal approval from the governor general, which is a formality.
The proposal was introduced in response to complaints from Canada’s media industry, which wants stronger control of digital companies to prevent them from eroding the market for internet advertising.
“Today, we are confirming that news availability on Facebook and Instagram will be discontinued for all users in Canada prior to the implementation of the Online News Act,” Meta stated in a statement.
For weeks, Facebook had hinted at such a move, claiming that news offers no economic value to the corporation and that its users do not use the network for news.
The proposal includes rules that will require platforms like Facebook and Alphabet’s Google to negotiate commercial arrangements and compensate news publishers for their material, similar to a pioneering law passed in Australia in 2021.
The suggestions, according to US IT companies, are unsustainable for their operations. Google has maintained that Canada’s regulation is broader than those established in Australia and Europe, putting a price on news story links displayed in search results and applying to non-news outlets.
The search engine giant proposed revising the bill to make displaying news content, rather than links, the foundation for payment, and to state that only firms who produce news and adhere to journalistic standards are eligible.
When comparable regulations were enacted in Australia, Google and Facebook threatened to curtail their services. Both eventually reached agreements with Australian media businesses after legislative changes were proposed.
Heritage Minister Pablo Rodriguez, who presented the law last year, stated on Thursday that the government “will engage in a regulatory and implementation process” once the legislation takes effect.
Who will defend Canadians against internet behemoths if the government won’t? Rodriguez made the announcement in a statement.
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