Meta, the parent company of Facebook and Instagram, will remove news content for its Canadian users after a new law in Canada requires the company to pay media outlets for articles shared on the platforms.
Meta confirmed in a statement to The Associated Press Thursday that it intends to comply with the Online News Act, but it will pull local news from its sites for Canadian users before it takes effect.
"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.
The Online News Act, which received Royal Assent on June 22, intends to level the playing field between online advertising giants and the shrinking news industry.
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The Department of Canadian Heritage – which is tasked with fostering and promoting "Canadian identity and values, cultural development, and heritage" – said the new law "will require the largest digital platforms to bargain fairly with Canadian news businesses for the use of their news content on their services."
It also impacts Google and news content shared on its platform.
"News organizations and journalists are essential to our democracy. They play a vital role in providing accurate, fact-based, non-partisan reporting on current events happening in our communities, across the country and around the world, allowing all of us to make informed decisions on important issues such as health, public safety and education," according to an excerpt about the Online News Act on the Canadian Heritage website.
It continues: "Millions of Canadians now access their news online. Digital platforms act as the gatekeepers in today’s digital news marketplace."
And, "The Online News Act levels the playing field between news businesses and large digital platforms to create greater fairness to ensure sustainability of the news industry. Through a market-based approach, it encourages voluntary commercial agreements between platforms and news businesses with minimal government intervention, as well as crucial safeguards to preserve the independence of the press."
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The new law came amid a standoff between Prime Minister Justin Trudeau's government and Silicon Valley tech giants.
Canadian Heritage Minister Pablo Rodriguez said he will push back on "threats" from Facebook and Google to remove journalism from their platforms.
Meta, based in Menlo Park, California, has taken similar steps to oppose royalty requirements in the past.
In 2021, the tech giant briefly blocked news for Australian users after the country passed legislation that would force tech companies to pay publishers for using their news stories. The block was lifted after Meta struck deals with Australian publishers.
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Meta and Google have already run tests that block news for certain Canadian users.
Legacy media and broadcasters widely support the new law as it helps bring in money for shrinking newsrooms.
The Associated Press contributed to this report.
