The Guru's World

News sharing on Facebook and Instagram has been turned off for all Canadian users by Meta Platforms Inc., a sign of increasing tension between tech giants and governmental bodies. In addition to this decision, the Canadian Parliament recently passed the Online News Act. This law aims to make internet giants like Google and Meta pay publishers for their work.

New Legislation Prompts Action

The Online News Act is expected to be formally adopted shortly after receiving Senate approval on Thursday. Meta stated that the approval of the Act that confirmed Facebook and Instagram news availability in Canada had ceased.

The newly enacted legislation mandates that Facebook and Alphabet’s Google establish commercial contracts and financially compensate news publishers for using their content. Australia’s 2021 law was a pioneering example of this approach.

Tech Companies Push Back

However, these proposals do not fit U.S. tech companies’ business models. To alleviate concerns, Google criticized the strictness of Canada’s law and suggested amendments.
Under Prime Minister Justin Trudeau’s leadership, the Canadian federal government has thus far resisted calls for change. Trudeau criticized the new legislation as “bullying tactics” enacted by Meta and Google.

Government Stands Firm

According to a spokesperson for Heritage Minister Pablo Rodriguez, who proposed the legislation the previous year, the government plans to commence “regulation and implementation” once the law is implemented. Rodriguez also raised a critical question, “If the government does not stand up for Canadians against tech giants, who will?”

In a statement, Shay Purdy, a spokesperson for Google, said the company had proposed “thoughtful and pragmatic solutions” to the legislation, but the bill was still “unworkable.” Google is seeking cooperation with the government on a viable solution.

It is expected that further talks will take place between Facebook and Google with the heritage ministry in the coming weeks. Rodriguez is scheduled to meet with senior Google executives on Thursday afternoon.

Media Industry Applauds

Canada’s media industry proposed this legislation to address its grievances against tech companies monopolizing the market for online advertising. News Media Alliance, A global industry group, applauded the Canadian Parliament for standing up to Big Tech.

Also, Coffey expressed optimism for the growing global recognition that fair compensation must be obtained legally. The woman hoped similar measures would be adopted in the United States.

There are shockwaves worldwide as tech companies and governments clash over publisher payments. We are still waiting to see other countries’ final impact and response.

References

AlJazeera. (2023, June 22). Facebook will end news sharing as Canada passes payment bill. https://rb.gy/u4puu