Canada stops advertising with Facebook and Instagram in news row

Canada’s federal government has announced that it will pull all its advertising from Facebook and Instagram in response to parent company Meta’s decision to restrict news content in compliance with a new law that requires tech firms to pay media for news.

Canadian officials have stated that they stand by the law and will not be intimidated by Meta’s actions. The government has been in contact with other countries planning to pass similar laws.

Additionally, Google has announced plans to block Canadian news in response to the Online News Act, but officials remain hopeful that negotiations with Google’s parent company Alphabet can prevent the block from taking effect.

Minister of Heritage Pablo Rodriguez expressed disappointment with Meta’s lack of engagement with the government and criticized the decision to block news for Canadians as “unreasonable and irresponsible.”

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The loss of government advertising is estimated to cost Meta C$10 million in business, although this represents a small portion of the tech giant’s overall revenue. The Canadian government hopes that its decision will inspire other companies, including Canadian firms, to follow suit. Media companies Quebecor and Cogeco, based in the province of Quebec, have also announced plans to pull advertisements from Meta.

Meta has argued that the law is flawed and ignores the realities of its platforms, highlighting that publishers choose to post on Facebook and Instagram because it benefits them to do so. The Canadian government asserts that the law is necessary to ensure fair compensation for news shared on tech platforms and to support struggling news organizations.

Canada’s law has garnered international attention, with Prime Minister Justin Trudeau stating that the country has become a global test case for similar legislation.

The law has received support from US senators and pundits, including US Democratic Senator Amy Klobuchar, who is leading efforts for a similar bill in Washington DC.

Meta has already begun restricting access to news in Canada and plans to implement a full blackout in the coming weeks.