Canada suspends advertisements on Facebook, Instagram in feud over new law

The government of Canada will not purchase advertisements on Facebook and Instagram as it faces a dispute over a new law on payment to online news publishers which has been opposed by the Meta-owned platforms, said Heritage Minister Pablo Rodriguez on Wednesday.

Last month, the Online News Act, or Bill C-18, was passed, which triggered Meta and Alphabet's Google to claim that they would stop providing access to news on their platforms in Canada.

The rules are being finalised by the government which requires the platforms to share some advertising revenue when the law gets implemented by the end of the year.

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"Canada is going to continue to stand firm and ensure that if social media platforms and internet giants want to use media, that they actually ensure that they're paying their fair share for it," said Prime Minister Justin Trudeau in Monteregie, Quebec.

However, the government still sees a path ahead and hopes to resolve the dispute and is hence, open to discussion with the platforms, said Rodriguez, who had introduced the legislation, while speaking to reporters in Ottawa.

Tighter regulations on internet giants

The government drafted the legislation after receiving calls from the media industry of Canada for the need for tighter regulations on internet giants to help news businesses recoup financial losses which they have suffered in the years as Google and Facebook continued to gain a greater share of the online advertising market.

Rodriguez said that 80 per cent of the revenue generated from advertisements in Canada, which was worth $7.5 billion in 2022, went to Google and Facebook, and the Liberal government wanted that the two social media platforms contribute to domestic journalism.

He added that the decision to suspend the government advertisements can cost Facebook and Instagram around $7.5 billion per year, he said.

Facebook "refused to discuss and they did not want to compensate the media accordingly and so we've decided to suspend advertising," Rodriguez stated while speaking alongside two of three Canadian opposition parties, which also have been supporting the legislation.

“Platforms benefit from the status quo. They benefit from the fact that there’s currently nothing forcing them to contribute to our Canadian news system. That status quo isn’t working. All we want, all Canadians want, is for these platforms to contribute their fair share," he added.

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“We’re telling both platforms to stay at the table, work through the regulatory process with us, contribute their fair share and keep the news on their platforms. We believe we have a path forward, and we’re willing to continue talking with the platforms," the minister stated.

"Unfortunately, the regulatory process is not equipped to make changes to the fundamental features of the legislation that have always been problematic," said a Meta spokesperson, adding that the company has been thinking to stop the availability of news in Canada in the coming weeks.

Sounding hopeful about reaching a compromise with Google, Rodriguez said that the government was convinced that "what Google is asking at this moment can be done."

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